Learn the Pitch Deck From Koffie’s $11 Million Sequence a

• Rising insurance coverage prices are a serious power pushing small trucking corporations out of the business.
• Insurtech startup Koffie raised $11 million to make use of various information to reward secure driving.
• Take a look at Koffie’s 14-page pitch deck under.

Mike Dorfman was a part of the fourth technology to work at his household’s trucking-insurance enterprise, so it was tense when he broke the information that he was leaving to cofound Koffie, a startup in the identical discipline. 

“My great-grandfather began a trucking-insurance company in New York in 1921,” Dorfman informed Insider. “I used to be the primary particular person in 100 years to determine not to do that.” 

However Dorfman noticed a possibility to assist small trucking corporations by altering insurance coverage underwriting. 

“I watch trucking firms exit of enterprise as a result of they could not afford their premiums,” Dorfman, now Koffie’s COO, mentioned.

Insurance coverage premiums for trucking firms have been on the rise for years as “nuclear verdicts” with multimillion-dollar value tags hit firms. 

In accordance with the American Transportation Analysis Institute information, truck-insurance premiums went up 22.5% between 2019 and 2020. Carriers informed the institute that insurance coverage premiums had been a prime cause their trucking corporations decreased salaries and bonuses in 2020. Specialists say the ensuing premiums are a elementary risk to small carriers: Small fleets’ premium prices per mile are thrice greater than massive fleets’ premiums.

When Dorfman met Koffie’s cofounder, Ian White, who’s a champion of “various information,” by means of a mutual contact, he noticed a possibility to make a dent in the issue. 

White, Koffie’s CEO, has a extra conventional software program and fintech background. After promoting his mapping startup, City Mapping, in 2015, he spent a number of years making use of various information evaluation to the hedge-fund business, however he was excited to carry his experience to bear on trucking. 

In trucking insurance coverage, conventional underwriting is fairly easy, White mentioned. It is based mostly on rudimentary driver-safety information and fleet dimension. 

Utilizing various information, Koffie considers roughly 300 completely different options of every truck, together with operational particulars just like the truck’s typical driving route and what sort of items it often hauls, together with extra granular security information. 

“We expect that the tools is a way more tangible place to have a look at the chance than their fleet operations or the person drivers,” Dorfman mentioned. 

Koffie insures roughly 1,000 vans in the present day in fleets ranging in dimension from one truck to just about 100.

Koffie can also be producing its personal information set to raised tailor premiums and keep away from claims. “We’re connecting to each truck that we insure through a digital camera and a {hardware} telematics gadget,” Dorfman mentioned. 

Koffie introduced in the present day that it raised $11 million in a Sequence A spherical led by Anthemis Group. Dorfman’s deep business expertise is a part of what satisfied traders. 

“The group has many years of expertise serving the sector, uniquely positioning them to supply a broad array of options. The trucking business has been vastly underserved in monetary companies for many years and Koffie is in an ideal place to fulfill truckers’ wants,” Amy Nauiokas, the founder and co-chief funding officer of Anthemis Group, mentioned in an announcement. 

Different corporations taking part within the funding spherical embody present Koffie traders Lerer Hippeau Ventures and Plug and Play Ventures; new traders together with CP Overture, Breakout Capital, Two Lanterns, Enterprise Companions; and a choose group of strategic angel traders. After elevating a complete of $15.5 million, Dorfman’s household is getting on board. 

“My dad and my sister run our household enterprise,” Dorfman mentioned. “We truly wrote our first coverage with them as a associate a few months again, which I feel is type of bringing me a little bit bit full circle.” 

Here is the pitch deck Dorfman and White used to boost funds to assist Koffie increase operations from three US states to 10 by the top of the yr.