Exclusive: Life Insurance Startup Amplify Raises $20m in VC Funding
Amplify, an insurance tech startup that wants to democratize life insurance, has raised $20 million in funding.
Founded in 2019, Amplify is a digital platform that lets users invest in various public equities and alternative assets using their life insurance premiums. The company wants to help everyday Americans access tax-free returns throughout their lifetime, Hanna Wu, Amplify CEO and cofounder, told Business Insider.
“Both my parents were life insurance agents who started a policy for me when I was very young,” she said. “After graduating from college, I was able to take some money out of my life insurance policy to open an office.”
Wu added that many people are unaware of the financial benefits available to them through life insurance policies and that the company wants to help change that. Traditionally, life insurance has been sold predominantly through a sales and commission model to older people via door-to-door methods, but now companies have moved their efforts online.
San Francisco-based Amplify said the company uses proprietary machine learning data to model customers’ lifetime values and helps attract high-value customers, leading to higher average premiums than the broader industry. The startup claims to have grown its revenues 200% annually since its Series A in 2022 and wants to use its new funding to help accelerate its suite of products through its digital platform.
Amplify’s Series B funding round was co-led by Crosslink Capital and Anthemis, alongside new investors Moneta Ventures and Evolution Ventures. Existing investors MRV and Greycroft also participated.
“This was not an easy fundraise whatsoever, but we are fortunate that investors have chosen to double down on Amplify’s growth and recognize our value proposition,” Wu added.
The startup plans to use the new capital to increase its headcount from 100 to around 125, particularly in B2B functions and data infrastructure.
Check out Amplify’s 10-slide Series B pitch deck below:
