SixThirty, US-based tech venture capital fund, is making a big bet on South Africa’s InsurTech company Click2Sure. SixThirty is a venture capital fund and a business development accelerator program that focuses on financial-based technology, InsurTech, and Cybersecurity solutions.
The company said in a statement it has made a multi-million rand investment in Cape Town-based Click2Sure, marking the first time an African startup has caught the eye of the
US-based tech venture fund. It invests in early-stage enterprise technology companies building.
The investment will enable Click2Sure to further develop its product and ensure businesses offering insurance take advantage of the benefits of digitisation: omnichannel distribution, reduction in administration costs, and better decisions with real-time reporting and insights, explains Daniel Guasco, who co-founded Click2Sure in 2016.
“Another reason we are thrilled to have SixThirty on board is their Go-To-Market Summer programme, where we were introduced to key individuals, executives and other founders well placed in the US market within blue-chip companies, to help us get a foot in the door, and mentor us on what the US market and stakeholders expect to see from a startup and technology partner,” says Guasco.
SixThirty’s investment in Click2Sure was motivated by a recognition of the surprisingly low penetration of digital distribution in the insurance industry. Along with the forced digitalisation ushered in by COVID-19, SixThirty found Click2Sure’s exclusive focus as an enabler of digital distribution a key differentiator that can help it scale into new sectors and markets.
“Click2Sure doesn’t sell insurance. We provide our clients who sell insurance with a comprehensive cloud-based, digital platform for the distribution, management and purchasing of insurance at the point of sale,” explains Guasco.
Digitisation replaces the time-consuming manual process of filling in multiple page policy documents. It also means insurers can get new products to market much faster and diversify their revenue streams.
The customer-centric offering lets customers buy insurance through any digital channel, depending on their preferences. These could be web/mobi channels, WhatsApp, SMS, eCommerce, and QR Codes. This satisfies the modern customer’s need for accessibility, convenience and speed as insurance companies can provide almost immediate coverage via a mobile app for example.
Guasco, who was previously CEO of Groupon South Africa and the founding director of online group buying website Twangoo, says: “Digitisation has many benefits for consumers; being able to use digital channels increases accessibility for the under- and uninsured, enables customisation of insurance cover, and assists customers in getting the most affordable insurance cover.”
SixThirty joins Greenlight Reinsurance, another US-based investor, amongst other investors, as capital partners in Click2Sure.