Travel insurance start-up Faye raises $8 million
Travel insurance insurtech start-up Faye announced that it has raised US$8 million in seed funding, which it will use to recruit ‘new talent’ and strengthen its technology
The announcement comes just one month after the company launched services in the US.
The company said that technological improvements will include additional proactive trip support and claim automation capabilities. Other plans include attracting new distribution partners, including travel advisors and travel agencies.
Faye offers a range of travel insurance coverage for trip delays, interruption and cancellation, emergency medical expenses, pre-existing medical conditions, Covid-19 disruption, lost or damaged belongings, emergency medical evacuation, and rental car and pet care via its smartphone app.
Faye says the app also features ‘real-time proactive alerts’, ‘24/7 access to customer experience specialists’, and ‘enables users to file claims digitally and quickly pays for approved claims via electronic transfers to Faye wallet, its… secure payments card that works like Apple Pay or Google Pay’.
The majority of the capital injection was contributed by Viola Ventures and F2 Venture Capital, with other investors including Portage Ventures, Global Founders Capital (GFC) and Israeli former basketball player Omri Casspi.
According to Omry Ben David, General Partner at Viola Ventures, his company’s reason for investing in Faye was that the start-up showed ‘favourable growth characteristics and unit economics’ with the potential to ‘reinvent’ consumer travel insurance in the US with more ‘bespoke, price-optimised coverage’.
The company was founded in 2019 and employs several veteran insurers
Faye was founded in 2019 by CEO Elad Schaffer and Chief Technology Officer (CTO) Daniel Green, is comprised of a team which includes Jeff Rolander, Director of Claims, who moved to Faye after two decades at Allianz; Moran Treiser, VP of Growth, who co-founded the growth marketing operation at Lemonade; and Lauren Gumport, Director of Communications, who built and executed travel tech Guesty's global communications strategy.
The company also has a board of advisors which includes former VP of Sales at AIG Travel Guard Rick Ensign, former President of Generali Travel Assistance Raija Itzchaki, and former CEO of Global Travel Insurance at Allianz Mike Nelson,