Hippo Insurance tried to fix homeowners insurance with technology — smart home devices, satellite imagery, and instant quotes instead of paper forms and three-week waits. Assaf Wand raised $709 million and went public via SPAC in 2021 at a $5 billion valuation. The stock then crashed over 95%. Turns out, underwriting risk is hard even with satellites. Hippo is still alive and fighting toward profitability, but the SPAC euphoria is a distant, expensive memory.
Founded
2015
HQ
Austin, USA
Total Raised
$709 million
Founder
Assaf Wand, Eyal Navon
Status
Public (NYSE: HIPO)
Website
www.hippo.comTHE ORIGIN STORY
Assaf Wand and Eyal Navon, both Israeli entrepreneurs, founded Hippo Insurance in 2015. They noticed that homeowners insurance hadn’t changed in decades.
Getting a quote involved filling out lengthy forms. Claims took weeks.
Pricing didn’t reflect the actual condition of the home.
Hippo’s pitch: use data (satellite imagery, public records, smart home data) to offer instant, accurate quotes and proactive risk prevention. They’d give customers smart home devices to detect water leaks and fires, preventing claims instead of just paying them.
WHAT THEY ACTUALLY DO
Hippo writes homeowners insurance policies and collects premiums. Revenue comes from premiums minus claims, operating costs, and reinsurance.
They also earn commission income from selling other companies’ insurance policies through their platform.
The company has shifted toward an "insurance-as-a-service" model, providing its technology platform to other insurers through Hippo’s subsidiary Spinnaker Insurance.
THE PRODUCTS
Homeowners insurance with instant digital quotes. Smart home protection kit (leak sensors, video doorbell).
Hippo Home Care — proactive home maintenance recommendations. Insurance-as-a-Service platform for other carriers (through Spinnaker).
HOW THEY GREW
Hippo grew through digital-first distribution — online quotes in 60 seconds, partnerships with homebuilders and real estate agents, and smart home device giveaways. They expanded rapidly across U.S.
states, though insurance licensing state-by-state is slow and expensive.
THE HARD PART
Underwriting profitability. Like many insurtechs, Hippo discovered that the hard part of insurance isn’t the technology — it’s the underwriting.
Climate change has increased homeowners claims (wildfires, hurricanes, flooding) and Hippo’s loss ratios have been challenging. The stock’s 95%+ decline from SPAC peak reflects these difficulties.
MONEY TRAIL
Series A
2017 · Led by Horizons Ventures
$14M raised
Series C
2019 · Led by Bond Capital
$100M raised
Series E
2021 · Led by Dragoneer / Ribbit Capital
$350M raised
SPAC IPO
2021 · Led by Reinvent Technology Partners Z
$245M raised
$5.0B valuation
WHO BACKED THEM
Went public via SPAC merger with Reinvent Technology Partners Z in 2021 at a $5 billion valuation. Pre-IPO investors included Ribbit Capital, Bond Capital, Comcast Ventures, and Felicis Ventures.
Total funding of approximately $709 million.
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