The investment was led by Zeev Ventures and saw participation from new investors Arkin Holdings and Launchbay Capital, as well as existing backers Ibex Investors, Phoenix Insurance, and IT-Farm. This round brings Honeycomb’s total funding to date to $55 million.
The company plans to use the funds to expand its workforce, aiming to double its staff from 90 to 180 over the next 18 months. A significant number of these new hires will be based in its development center in Herzliya.
Honeycomb was founded by CEO Itai Ben-Zakan and CTO Nimrod Sadot. The company began offering real estate insurance in the U.S. in June 2021 and now operates in 16 states, representing 60% of the US market. The insurtech has issued policies covering $21 billion worth of real estate and expects to triple that amount within the next year. The company’s primary focus is on landlord insurance, operating in a U.S. market estimated to be worth $34 billion annually.
Honeycomb’s AI-driven technology allows for precise risk management and underwriting at the individual building level, enabling it to offer competitive pricing for well-maintained properties. This advanced approach also enhances the customer and broker experience by streamlining processes and adapting insurance coverage to clients’ evolving needs.
The company offers its policies through its platform and a growing network of insurance brokers, who can quickly bulk-quote numerous submissions in real time, a process that traditionally took weeks. This efficiency translates to higher profitability for brokers and significant value for customers.
Speaking about the fundraise, Ben-Zakan said, “The new funding will be used to further improve the end-user experience, driving enhanced profitability to our broker partners, and broadening the type and size of policies offered. We plan to deepen our technological advantage with proprietary AI models leveraging unique first-party data and expand into new insurance markets, turning Honeycomb into a one-stop shop for everything related to commercial real-estate insurance in the U.S.”
Zeev Ventures founding partner Oren Zeev also commented, saying, “Honeycomb is an example of an insurtech company that solves a major problem in a huge market, thus allowing it to increase ARR at a fast pace and progress to operational profitability in a short time.”
