Bought By Many secures GBP78.4m growth equity financing
Bought By Many, a London-based pet insurance provider, has secured a GBP78.4 million (~USD98 million) growth equity investment led by FTV Capital, a US financial services-focused growth equity investment firm, alongside follow-on from numerous existing investors.
The capital raise follows impressive growth for Bought By Many, which launched its market-leading suite of pet insurance policies in 2017 and now insures over 200,000 pets.
Sales of the company’s cat and dog policies increased by more than 150 per cent over the last year. Thousands of pet owners voted Bought By Many the UK’s Most Trusted Pet Insurance Provider in 2019. The company also ranked in the top 40 of the 2018 and 2019 editions of the Sunday Times Tech Track 100 and was named one of Wired’s hottest start-ups in Europe.
The growth equity financing will fuel Bought By Many’s continued growth, driving increased market share in the UK and enabling the further evolution of its product and world-class claims experience. The company plans to target further international expansion, with launches into new territories, replicating its success in Sweden where it launched in late 2019 and already covers thousands of cats and dogs.
As investors with a strong track record of backing leading financial services providers, FTV is well positioned to support Bought by Many as it continues to grow into new markets. FTV recognises the rapidly-growing demand for pet services and is well positioned to connect Bought by Many with FTV’s Global Partner Network, a network of industry executives from the world’s leading enterprises, and other institutions looking to partner with a leading pet insurance provider.
Steven Mendel, CEO and co-founder of Bought By Many, says: “We’re delighted to close this round with the full support of our investors. This investment gives us the opportunity to look ahead, create more jobs and provide the insurance pet owners care about for years to come.”
“I am proud of the tremendous strides we have made within just three years of launching our pet insurance . We’re excited to work with FTV Capital new and existing investors who share our values, build on our success in the UK and Sweden, and grow into new markets in need of high-quality pet insurance. We will continue to invest in our people and products as we become visible to millions more pet owners.”
Bought By Many’s core mission is to show pet owners that they can love their insurance provider. Several years ago, Bought By Many found pet owners were being poorly served by incumbent insurers and set out to construct policies that put the customer at the centre of the policy experience. Through its proprietary research, technology and dedication to continuous product iteration and improvement, Bought By Many has tailored policies designed to best serve customer coverage needs while also offering best-in-class customer service and support.
Bought By Many was the first UK pet insurance provider to offer policies covering pre-existing conditions, online claims processing, and the removal of the 14-day waiting period to claim for switchers. It also offers unique policies, including one which never increases in price and another that offers a customer their money back if they have not claimed.
Mike Vostrizansky of FTV Capital, who will join the company’s board in conjunction with the transaction, says: “Bought By Many’s genuine, relentless customer-first focus truly sets them apart from their competition. Their differentiated value proposition -- through breadth of product, quality of coverage, and fast and efficient claims processing -- has always put customers at the centre of everything they do, as evidenced by their high net promoter scores. Additionally, the company’s consumer-friendly technology and high-quality team have allowed the company to rapidly enhance its offering with market-leading features like digital vet appointments, fully digital claims, direct settlement with vets, and other easy-to-use features.
The future is bright for Bought By Many and FTV Capital is proud to be a contributing partner to the company’s continued, long-term success.”
Since its last funding round, Bought By Many has established itself as a leader in the crowded UK market of pet insurance providers. The company was the first UK pet insurance provider to partner with video vet service FirstVet, which has helped thousands of customers get near-instant expert advice from the comfort of their home during the coronavirus lockdown, in addition to launching the successful Dogcast podcast with Clare Balding.
Bought By Many co-founders Steven Mendel (CEO) and Guy Farley (CTO) have built a team of 154 people and counting, spanning UK offices across London, Haywards Heath and most recently, Birmingham, where the company houses its rapidly growing customer service and development teams, along with a burgeoning team in Stockholm. In 2019, Bought By Many acquired the software development agency, Cotidia, to bolster its team of developers.
FTV Capital’s Mike Vostrizansky will join the company’s board on completion. Luisa Barile, Bought By Many’s Chief Financial Officer, will become a director shortly after completion. Both will join new board chair Jim Sutcliffe who joined in early 2020. Existing shareholders CommerzVentures, Munich Re Ventures, and Octopus Ventures have also invested in the funding round.
Brad Bernstein, managing partner of FTV Capital, says: “FTV is very impressed by the strong growth and product traction of Bought By Many in the UK and Sweden. Our growth equity investment in the company is a reflection of our enthusiasm for Bought By Many’s excellent market potential and the strength of the leadership team.
"The close of this significant growth equity investment marks a new chapter for Bought By Many, and we are excited to be a part of the company’s journey and continued success. We see further potential for growth and expansion, and we look forward to working alongside leadership to hit many more milestones in the future.”