While a number of companies who currently offer at-home medical and health diagnostics had rushed to produce kits that would allow for self sample collection by people who passed a screening and believed they might have contracted the new coronavirus, the U.S. Food and Drug Administration (FDA) has updated its Emergency Use Authorization guidelines to private labs that specifically bar the use of at-home sample collection. This means startups, including Everlywell, Carbon Health and Nurx, will have to immediately discontinue their testing programs in light of the clarified rules.

The FDA issued the updated guidance on March 21, and though some of the companies had already begun to ship their sample collection kits to people, and even begun to receive samples back to their diagnostic laboratory partners, even any samples in-hand will not be tested, and will instead be destroyed in order to compel with the FDA’s request. Carbon Health is continuing testing at its physical clinics, and notified TechCrunch of this update on Sunday evening, and an individual who ordered the Carbon Health test and sent back their sample provided the following email explaining the decision and what happens next:

We have been working hard to provide our patients every opportunity for COVID-19 testing and treatment, including exploring different avenues for testing.

This evening, we were notified by our lab partner, Curative Inc, that the 3/21/2020 FDA update for COVID-19 testing clarified that at-home sample collection is not covered under the EUA (U.S. Food and Drug Administration’s Emergency Use Authorization). Carbon Health is discontinuing distribution of the at-home sample collection kits effective immediately.

Based on this update by the FDA, we sincerely regret to inform you that you will not get a test result. If you have already shipped your kit back, the specimen will be destroyed by Curative, Inc using standard biohazard disposal. If you have not received your kit yet, please discard it upon receipt.

Please schedule an in-clinic visit at a Carbon Health clinic near you, if possible, to be tested using our traditional specimen collection by a clinician. The turn-around time for results is about 3-5 days from time of specimen collection.

Our goal was to facilitate at home specimen collection in order to keep patients safely in their homes while also providing another avenue for patients to be tested. This is a very dynamic time and we are working tirelessly to work with new partners to expand COVID-19 testing for our communities, as soon as possible. We are truly sorry for the frustration and inconvenience this has caused.

All three of the companies we spoke to that were working to distribute these tests had partnered with labs that were approved under the FDA emergency guidelines to perform COVID-19 diagnostics, and it was the understanding of all parties that at-home self collection via swab kits was included in the authorization. All three also said they were offering their tests at-cost, and seeking ways to defray even that cost to consumers through potential healthcare agency partnerships. Each also offered telehealth consultations for both the sample-gathering process, as well as for delivery of the results.

The FDA’s goal with its emergency use authorization is to enable testing without sticking to its usual qualification process, but it must always balance accuracy and safety. It did grant emergency use approval to Cepheid’s rapid point-of-care test last Friday, as well, which should expand availability of tests on-site in locations like hospitals and emergency medical care clinics, but this updated rule means that at-home tests will not, in the near-term, be a path towards expanding testing coverage in the U.S.

Another startup, Scanwell, has developed an in-home test that includes the diagnostics, using a serological test that looks for the presence of antibodies in a person’s blood. This is still pending FDA approval, and the company is seeking that under the emergency use authorization, with an anticipated approval process time of around six to eight weeks.

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Enable, a U.K. startup that has developed a cloud-based “rebate management solution” to help distributors, manufacturers and retailers manage rebates, is announcing $13 million in Series A funding.

The round is led by Menlo Ventures, with participation from Sierra Ventures. As part of the investment, Menlo Ventures’ Steve Sloane has joined the Enable board.

Founded by long term business partners Andrew Butt and Denys Shortt in 2015 but launched fully in 2017, Enable makes it easy for distributors to track, manage, and optimise rebates. Rebate incentives offered by suppliers are a common industry practice, while the rebates offered are increasingly relied on by distributors to turn a profit.

However, the agreements put in place and the tracking and validating of qualifying terms has created a back office headache and many wasted hours on behalf of parties involved. Enable has set out to digitise the whole process and in turn bring suppliers and distributors more closely aligned.

“We take the pain away with our fully automated platform which becomes the system of record for all B2B deals, and the calculator of granular deal earnings,” explains Enable’s Andrew Butt. This includes a breakdown by product, location, day, supplier, and customer and the reconciliation of sales and purchase transactions pertaining to those deals.

“The complexity of these deals has also massively increased,” says Butt. “For distributors to survive, they must take full control of these deals and ensure that money is not being left on the table, yet until now there has been a lack of software that is designed around the distributor”.

In addition, he says that Enable is also allowing customers to create more targeted and better deals that “increase sales and profit, improve cash flow, and strengthen relationships” with suppliers. “We do this by identifying opportunities in the exiting deals and spotting where new deals can be created,” he adds.

Butt says the opportunity is huge, too, with Manufacturers issuing more than $1 trillion in rebates each year. Noteworthy, until now the company has been largely and in the last two years has on-boarded more than 2,000 trading partners processed rebates on more than $30 billion in sales. Customers include Rexel, Travis Perkins, and Wolseley, as well as other distributors, buying groups, and retailers from across the U.S., Canada, and Europe.

Adds Butt: “Our competitors focus on manufacturers and rebates payable – we’ve flipped the model on its head and deal with distributors and rebates receivable, which is more tricky to manage because distributors deal with a higher number and diversity of products compared to manufacturers. Also, it’s more important as rebates are now more than 100% of the profit for distributors across many verticals”.

More broadly, Butt frames Enable as a “collaborative platform” where manufacturers and distributors come together in a shared ecosystem to do better deals. “It’s like a ‘Dropbox for deals’,” he says. “[In contrast,] our competitors provide a traditional ‘private’ installation of their solution, totally segregated for each customer”.

Germany’s Global Savings Group (GSG), the e-commerce content company, has acquired French cashback company iGraal for €123.5 million in a mixture of cash and stock.

Specifically, the deal was reached with iGraal’s majority owner M6 Group and consists of €35 million in cash; the remaining is made up of an exchange of shares. The acquisition is said to be one of the largest in the cashback and loyalty space in recent years, with iGraal considered the leading digital cashback player in France.

“In 2019, GSG and iGraal jointly saw more than six million members using its loyalty tools and connected advertisers to around 400 million consumers,” says GSG. “The deal makes GSG the largest rewards, savings and shopping content platform in Europe”.

As a result of the acquisition, Munich-based GSG says it expects to have more than half a billion shopping-related touchpoints and to facilitate over 40 million transactions to its merchant partners in 2020. (Coronavirus world recession permitting.)

It is also talking up the data it has access to, saying that the additional user interactions provide GSG with valuable new insights into the shopping behaviour of millions of consumers worldwide and will enable it to build an “even smarter” advertising platform for its partners.

In combination, iGraal and GSG say the two companies intend to expand their cashback and loyalty solutions into new European markets and significantly increase its member base and reach. Despite strong investments and market expansion, GSG expects to stay profitable also in 2020,” adds the company.

Meanwhile, the acquisition of iGraal follows GSG buying Pouch, the U.K.-based money-saving browser extension, in January 2019. This saw the Pouch team join GSG, and Pouch founders Ben Corrigan, Jonny Plein, and Vikram Simha becoming Pouch “Global Product Leads” at GSG.

Launched publicly in September 2016, Pouch is best known for its shopping tool that automatically alerts buyers to working voucher codes as they visit over 3,000 U.K. e-commerce sites. The Pouch browser extension is available for Google Chrome, Safari and Firefox.

This feature from The Washington Post maps the spread of the coronavirus in the US and worldwide. It helps identify patterns in infection clusters and timelines. For this week’s posts, click on...

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Long and short distance travel have all but stopped for many people at the moment. But looking forward to a time when that may no longer be the case, a company designing flying taxis is today announcing a $240 million round of funding to help continue developing its product.

Lilium, a Munich-based startup that is designing and building vertical take-off and landing (VTOL) aircraft with speeds of up to 100 km/h, eventually plans to run in its own taxi fleet. It is deploying its latest round of funding to keep developing its aircraft and to start building manufacturing facilities to produce more of them for an expected launch date in 2025.

“We’re working to deliver a brand new form of emissions-free transport,” said a spokesperson. “Doing something like that takes significant time and investment, but the outcome is a valuable business and a chance to have a genuinely positive impact on the way we travel.”

This latest investment was an inside round (involving existing, not new, investors), and it closed last month. It was led by Tencent, with participation from other previous backers that included Atomico, Freigeist and LGT. The valuation is not being disclosed, but the company confirms that it is significantly higher than it was in its Series B in 2017. (For some more context, PitchBook estimates that last year the company was valued at around $470 million.)

The news today caps off some challenging recent months for the company, even before the coronavirus took hold of the world and cast a dark shadow on any kind of travel.

Last October, we reported that several sources said that Lilium, which employs 400 people, was looking to raise between $400 million and $500 million, a round that it had been working on for some months. In the end, the lower amount the company is putting out today is $160 million less than the lower end of that range, but from what we’ve been told, this is not far from what the company was actually aiming to raise. Still, that combined with the fact that there are no new investors in the raise might imply some challenges there.

Nevertheless, it is one of the biggest fundraises to date for a startup in the “flying vehicle” space. (Volocopter, which is also designing a new kind of flying taxi-style vehicle and service, closed a $94 million round in February.) Lilium has now raised more than $340 million to date.

“This additional funding underscores the deep confidence our investors have in both our physical product and our business case. We’re very pleased to be able to complete an internal round with them, having benefited greatly from their support and guidance over the past few years,” said Christopher Delbrück, Lilium’s CFO, in a statement. “The new funds will enable us to take big strides towards our shared goal of delivering regional air mobility as early as 2025.”

But raising money has not been the only challenge. At the beginning of this month, the older of Lilium’s two prototypes burst into flames while some maintenance was being carried out. The model was close to being retired, but testing on the second, newer model has nonetheless been paused until the company can determine the cause of the accident with the first aircraft.

“Our second demonstrator aircraft was fortunately undamaged in the fire and will begin flight testing once we’ve understood the cause of the fire in the first aircraft,” a spokesperson said.

The market for aircraft-based taxi services — be they electric, autonomous, or both — is still very nascent. There are no approved aircraft yet on the market (indeed, the regulations for what these would even look like haven’t even been created), and, as a result, there are no services yet in place, either.

But the opportunity of building fast services that could mitigate current traffic congestion, while also reducing carbon emissions, is potentially massive, and so we are seeing a lot of activity and investment from many corners as companies hope their takes on solving that challenge are the ones to hit the mark.

Lilium’s would-be rivals include not just fellow German startup Volocopter, but also Kitty Hawk, eHang, Joby and Uber, in addition to Blade and Skyryse, air taxi services of sorts that offer more conventional helicopters and other vessels in limited launches for those willing to spend the money.

It’s not clear how much of this will fare in the months and years ahead, in particular at a tricky time for travel and the wider economy. But for now, Lilium’s work so far — it was founded in 2015 by Daniel Wiegand (CEO), Sebastian Born, Matthias Meiner and Patrick Nathen — has been promising enough for its investors to continue backing it for the long haul.

“At Tencent we’re committed to supporting technologies that we believe have the potential to tackle the greatest challenges facing our world,” said David Wallerstein, Chief eXploration Officer at Tencent, in a statement. “Over the last few years we’ve had the opportunity to see the professionalism and dynamism with which Lilium are approaching their mission and we’re honored to be supporting them as they take the next steps on their journey.”

Following similar moves by Lime, Bird, Tier and others, Voi Technology, the European e-scooter rentals and so-called micro-mobility startup, says it has “paused” operations in several countries due to the Coronvirus pandemic. This sees the company suspend operations in all but nine key cities.

In a short statement issued to media on Friday, Voi said it had regrettably been “forced” to pause operations in the majority of cities it operates in, with only a handful of its largest cities being serviced.

The cities where Voi is continuing to operate in are: Copenhagen, Helsinki, Gothenburg, Stockholm and Oslo in the Nordics, and Berlin, Hamburg, Nuremberg and Munich in Germany.

More broadly, the Coronavirus outbreak is a major blow to e-scooter companies as cities around the world are restricting movement and social distancing and isolation is, to varying degrees, being practiced. This is seeing many companies putting in place work-from-home policies and negating the need for daily commutes, where e-scooters are often favoured. The world economy is also taking a hit and therefore recreational spending and travel is on an escalating downwards trend too.

More broadly, the business plans of e-scooter rental startups factor in seasonal demand and sources told me a few months ago that runway across the industry was based on deep enough pockets and operational smarts to get through Winter and be in a strong position to capitalise on peak Spring and Summer season demand. Coronavirus inevitably means “Winter” could now last for a very long time indeed.

The rest of the statement from Voi — which raised $85 million in Series B funding in November — follows below:

In the cities we keep open we will drastically reduce our fleet size but will continue to serve our communities and wherever possible we will keep capacity at important hubs, like major transport interchanges and hospitals.

We have been forced to make this hard decision as a result of the Covid-19 pandemic. People are working from home and no longer visiting restaurants, pubs, theatres and friends and consequently have stopped using Voi e-scooters to get around.

We plan to kick start our operations again when the situation allows.

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Right now the world is at war. But this is no ordinary war. It’s a fight with an organism so small we can only detect it through use of a microscope — and if we don’t stop it, it could kill millions of us in the next several decades. No, I’m not talking about COVID-19, though that organism is the one on everyone’s mind right now. I’m talking about antibiotic-resistant bacteria.

You see, more than 700,000 people died globally from bacterial infections last year — 35,000 of them in the U.S. If we do nothing, that number could grow to 10 million annually by 2050, according to a United Nations report.

The problem? Antibiotic overuse at the doctor’s office or in livestock and farming practices. We used a lot of drugs over time to kill off all the bad bacteria — but it only killed off most, not all, of the bad bacteria. And, as the famous line from Jeff Goldblum in Jurassic Park goes, “life finds a way.”

Enter Felix, a biotech startup in the latest Y Combinator batch that thinks it has a novel approach to keeping bacterial infections at bay – viruses.

It seems weird in a time of widespread concern over the corona virus to be looking at any virus in a good light but as co-founder Robert McBride explains it, Felix’s key technology allows him to target his virus to specific sites on bacteria. This not only kills off the bad bacteria but can also halt its ability to evolve and once more become resistant.

But the idea to use a virus to kill off bacteria is not necessarily new. Bacteriophages, or viruses that can “infect” bacteria, were first discovered by an English researcher in 1915 and commercialized phage therapy began in the U.S. in the 1940’s through Eli Lilly and Company. Right about then antibiotics came along and Western scientists just never seemed to explore the therapy further.

However, with too few new solutions being offered and the standard drug model not working effectively to combat the situation, McBride believes his company can put phage therapy back at the forefront.

Already Felix has tested its solution on an initial group of 10 people to demonstrate its approach.

“We can develop therapies in less time and for less money than traditional antibiotics because we are targeting orphan indications and we already know our therapy can work in humans,” McBride told TechCrunch . “We argue that our approach, which re-sensitizes bacteria to traditional antibiotics could be a first line therapy.”

Felix plans to deploy its treatment for bacterial infections in those suffering from cystic fibrosis first as these patients tend to require a near constant stream of antibiotics to combat lung infections.

The next step will be to conduct a small clinical trial involving 30 people, then, as the scientific research and development model tends to go, a larger human trial before seeking FDA approval. But McBride hopes his viral solution will prove itself out in time to help the coming onslaught of antibiotic resistance.

“We know the antibiotic resistant challenge is large now and is only going to get worse,” McBride said. “We have an elegant technological solution to this challenge and we know our treatment can work. We want to contribute to a future in which these infections do not kill more than 10 million people a year, a future we can get excited about.”

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Efforts to get at-home test kits for the COVID-19 coronavirus are ramping up quickly, and two more health industry startups are bringing their own products to market, with both Carbon Health and Nurx starting to ship their own in-home sample collection kits.

Both of these new offerings are the same in terms of approach to testing: They deliver swab-based sample collection hardware that people can use at home to collect a mucus sample, which they then ship back using included, safety approved, projective packaging to be tested by one of the existing FDA-approved commercial labs across the country.

These tests follow the PCR-based method, which tests for the genetic presence of the COVID-19 virus in a patient. These have a high degree of accuracy, at least when performed in a controlled setting and administered by a medical professional, and are the same tests that are available via drive-through testing stations being set up by state agencies.

At-home use is relatively new to market, and could introduce some potential for error in the collection part of the process, but both Carbon Health and Nurx are offering consultation with medical professionals to help ensure that samples are collected properly, and that results, when available, are correctly interpreted and provided with guidance on next steps for those taking the tests.

None of these tests are free — the Carbon Health test costs $167.50, and the Nurx test costs $181, including shipping and assessment. These are in line with other offerings, including the one from Everlywell we covered earlier this week, which retails for $135. These are described as essentially at-cost prices, and all parties say they are subject to coverage by FSA or HSA money, or potentially by insurers depending on a person’s plan.

One big question around these types of tests is how much supply will be available. Nasopharyngeal swabs used for the in-person type of testing are already reportedly in short supply in some regions, and testing needs are only growing. Carbon is using different swabs to collect a simple saliva sample, which it notes are not in as short supply as the nasopharyngeal version. Other types of tests, including a “serological” one being developed by startup Scanwell, instead work by analyzing a patient’s blood, and could provide some relief for the swab-based tests, especially now that the FDA has expanded its emergency guidance to include their use.

Nurx, which also offers at-home HPV screening, says that it will have 10,000 kits available to patients “over the coming weeks,” and hopes to expand to cover “over 100,000 patients” in the “near future.” Carbon Health CEO and co-founder Eren Bali tells me that it should ramp to around “10,000 per day capacity in about two weeks,” through its medical device partner Curative Inc., and that it can do 50 per day today, with an estimated increase to 150 per day by Monday and 1,000 per day by end of week.

All of these tests are gated by a screening and assessment questionnaire, and the round-trip time is likely to take a few days even with round-trip shipping due to testing times. It may seem like a lot of these are popping up, but these startups at least have proven track records in healthcare services, and there will be a need for very widespread testing in order for any broad attempt to flatten the curve of the virus to prove successful, so expect more of these providers to come on line.

Twenty-eight percent of a nurse’s time is wasted on low-skilled tasks like fetching medical tools. We need them focused on the complex and compassionate work of treating patients, especially amid the coronavirus outbreak. Diligent Robotics wants to give them a helper droid that can run errands for them around the hospital. The startup’s bot Moxi is equipped with a flexible arm, gripper hand and full mobility so it can hunt down lightweight medical resources, navigate a clinic’s hallways and drop them off for the nurse.

With the world facing a critical shortage of medical care professionals, Moxi could help healthcare centers use their staffs as efficiently as possible. And because robots can’t be infected by COVID-19, they’re one less potential carrier interacting with vulnerable populations.

Today, Diligent Robotics announces its $10 million Series A that will help it scale up to deliver “more robots to more hospitals,” CEO Andrea Thomaz tells me. “We’ve been designing our product, Moxi, side by side with hospital customers because we don’t just want to give them an automation solution for their materials management problems. We want to give them a robot that frontline staff are delighted to work with and feels like a part of the team.”

The round, led by DNX Ventures, brings Diligent Robotics to $15.75 million in total funding that’s propelled it to the fifth generation of its Moxi robot. It currently has two deployed in Dallas, Texas, but is already working with two of the three top hospital networks in the U.S. “As the current pandemic and circumstance has shown, the real heroes are our healthcare providers,” says Q Motiwala, partner at DNX Ventures. The new cash from DNX, True Ventures, Ubiquity Ventures, Next Coast Ventures, Grit Ventures, E14 Fund and Promus Ventures will help Diligent Robotics expand Moxi’s use cases and seamlessly complement nurses’ workflows to help alleviate the talent crunch.

Thomaz came up with the idea for a hospital droid after doing her PhD in social robotics at the MIT Media lab. Her co-founder and CTO Vivian Chu had done a master’s at UPenn on how to give robots a sense of touch, and then came to work with Thomaz at Georgia Tech. They were inspired by a study revealing how nurses spent so much time acting as hospital gofers, so in 2016 they applied for and won a National Science Foundation grant of $750,000 that funded a six-month sprint to build a prototype of Moxi.

Since then, 18-person Diligent Robotics has worked with hundreds of nurses to learn about exactly what they need from an autonomous assistant. “Today you will go about your day, and you probably won’t interact with any robots….we want to change that,” Thomaz tells me. “The only way you can really bring robots out of the warehouses, off of the factory floors, is to build a robot that can work in our dynamic and messy everyday human environments.” The startup’s intention isn’t to fully replace humans, which it doesn’t think is possible, but to let them focus on the most human elements of their jobs.

Moxi is about the size of a human, but designed to look like an ’80s movie robot so as not to engender an uncanny valley cyborg weirdness. Its head and eyes can move to signal intent, like which direction it’s about to move, while sounds let it communicate with nurses and acknowledge their commands. A moving pillar lets it adjust its height, while its gripper hand and arm can pick and put down smaller pieces of hospital equipment. Its round shape and courteous navigation makes sure it can politely share crowded hallways and travel via elevator.

Diligent Robotics’ solution engineers work with hospitals to teach Moxi how to get around and what they need. The company hopes to eventually build the ability to learn and adapt right into the bot so nurses can teach it new tasks on the fly. “The team continues to demonstrate unmatched robotics-specific innovation by combining social intelligence and human-guided learning capabilities,” says True Ventures partner and Diligent board member Rohit Sharma.

Hospitals pay an upfront fee to buy Moxi robots, and then there’s a monthly fee for the software, services and maintenance. Thomaz admits that “Hospitals are naturally risk-averse, and can be wary to take up new technology,” so the startup is taking a slow and steady approach to deployment so it can convince buyers that Moxi is worth the learning curve.

Diligent Robotics will be competing with companies like Aethon’s TUG bot for pulling laundry and pharmacy carts. Other players in the hospital tech space include Xenex’s machine that disinfects rooms with light, and surgical bots like those from Johnson & Johnson’s Auris and Intuitive Surgical.

Diligent Robotics hopes to differentiate itself by building social intelligence into Moxi so it feels more like an intern than a gadget. “Time and again, we hear from our hospital partners that Moxi not only returns time back to their day but also brings a smile to their face,” says Thomaz. The company wants to evolve Moxi for other dull, dirty or dangerous service jobs.

Eventually, Diligent Robotics hopes to bring Moxi into people’s homes. “While we don’t see robots replacing the companionship and the human connection, we do dream of a time that robots could make nursing homes more pleasant by offsetting the often staggering numbers of caretakers to bed ratios (as bad as 30:1),” Thomaz concludes. That way, Moxi could “help people age with dignity and hold onto their independence for as long as possible.”

French startup October wants to reduce the pressure on small and medium companies going through the coronavirus crisis. In order to give them some headroom, companies that have borrowed money on October won’t have to pay back their loans for the next three months.

October works with small companies in France, Spain, Italy, Netherlands and Germany that need a credit line. One of the company’s key advantages compared to borrowing money from a bank is that it’s much faster. You can apply to a credit line and get an answer just a few days later. Usually, companies pay back their loans over time, with monthly repayments over three months to seven years.

October evaluates risk before handing out loans. It works with many institutional partners to raise funds and deploy capital in those loans. Some retail customers also invest on October directly on a company-by-company basis.

But many small European companies that have borrowed money on October won’t generate revenue for a little while. They could face cash flow issues and they could have issues repaying those loans.

That’s why October has decided with its institutional partners that it is postponing all outstanding loans for the next three months. Companies won’t have to pay a huge sum of money after that; October is also postponing the end date of the loans by three months.

October then asked retail investors to vote whether they are in favor or against postponing loans; 99.42% of retail investors who voted followed October’s move.

October is also waving its own fees for the next three months, but companies will still have to pay interest on outstanding capital.

This way, fewer companies should go bankrupt over the next three months. It should minimize the impact of the current economic crisis on the overall default rate of October loans.

Ohio-based Coterie, a startup working on in the commercial insurance space, has announced today it has raised $8.5 million Series A. The company had previously raised a little over $3 million in early investments, bringing its equity capital raised to nearly $12 million to date; the firm also told TechCrunch that it has raised $2.5 million in available venture debt as part of its current round.

In an uncertain market, Coterie is better capitalized than it ever has been, thanks to Intercept, and The Hartford, and RPM Ventures , which led its latest round.

Coterie operates in insurtech, a space we’ve covered extensively in recent months. But it’s not MetroMile or Lemonade, both of which selling consumer insurance. Nor is it akin to The Zebra, Policygenius, Gabi, or Insurify, helping consumers link to third-party insurance products. It’s closest private market comp, looking at our recent coverage, is Briza, which produces APIs linking small businesses to small business insurance products.

But what Coterie does is slightly different if we’re grokking its model correctly: It offers what it calls “commercial insurance as a service,” according to an interview with TechCrunch. Let’s explore.

Model

In a call with TechCrunch about its latest funding event, Coterie explained that, using APIs, it connects “places that have some commercial insurance requirement, or service customers who need commercial insurance, and we simply pass that information into our system and we quote and bind automatically.”

While Coterie does partner with external insurance entities (more on that in a second), it handles a lot of the work in-house: “We actually have the underwriting control, so we don’t we don’t ship it off to 10 different carriers. We actually say yes, we will bind this policy, or no, we won’t,” said Coterie CEO David McFarland, adding that “most of the time we have a pretty broad appetite so we can write a good bit of business.”

Helping it in this process are some partners in the insurance market that help with “the licenses and the capital requirements,” the company said.

What makes Coterie interesting isn’t that is a digital take on a previously paper business, but that it’s product allows it to insure freelancers (Coterie partners with freelance marketplaces, allowing it access to a potential customer base and helping the marketplace itself provide insured providers) for even small increments of time; that’s something that wasn’t economically attractive under old models, if even possible.

According to the firm, it offers general and professional liability insurance, along with business owners policies. Coterie has eyes on various types of data to power its model (and make good policy pricing choices), highlighting information like business payment flows to vet company health, to pick an example.

Coterie only started selling its products in September of 2019, but noted to TechCrunch that it saw “pretty good growth” from from the jump, and “pretty steady growth” since then. But as Coterie noted in our call, insurance is a somewhat low-margin business, meaning that policy growth, while good, needs to be pretty steep for the gross margin generated to stack up too high.

But with $8.5 million in new equity capital and total access to over $10 million in funds, the startup now has more money than ever to pursue its model. And if it’s like the rest of the insurtech space, it has a good shot at quick growth.

Update: The first version of this post included an incorrect investor; it has since been corrected.

Sramana Mitra: Do you want to do another example? Ashish Jain: Let’s take one from India. I would not even call it emerging anymore. India is going through Innovation 3.0. 1.0 was around business...

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We’re big believers in Bootstrapping Using Services, as you know. Here’s the story of CEO James Kane who scaled RWS to over $10 million in revenue using the method. Sramana Mitra: Let’s start at the...

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Entrepreneurs are invited to the 477th FREE online 1Mby1M mentoring roundtable on Thursday, March 19, 2020, at 8 a.m. PDT/11 a.m. EDT/4 p.m. CET/8:30 p.m. India IST. If you are a serious...

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In case you missed it, you can listen to the recording here: 477th 1Mby1M Roundtable March 19, 2020: With Elly Truesdell, Almanac Insights

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