This Newcastle motorist app is about to launch after smashing its crowdfunding target
A new app designed to reduce insurance costs for motorists is to be launched following a successful crowdfunding campaign.
The honcho team closed the investment window early following the support received for its disruptive proposition.
The team at honcho approached crowdfunding platform, CrowdCube, in November 2017 to offer UK drivers and investors the chance to take a stake in the company, after EU funds allocated to support the launch were put on indefinite hold.
Gavin Sewell, CEO at honcho, said: “We are delighted to have raised significantly more than our target and to now be able to make progress on the next phase of the honcho project.
“The support we have received since the launch of the crowdfunding campaign has been phenomenal and we are thrilled to have secured investment from numerous CrowdCube investors, including Maven Capital Partners.
“honcho will be a great asset to the UK consumer insurance market and revolutionise the industry for drivers, in particular young motorists who face real challenges in securing a competitive deal.”
A conditional investment of £150k was made from the Finance Durham Fund, managed by Maven Capital Partners, pending a successful crowdfunding campaign.
By January 5 and with nine days of the campaign remaining, the £650k target had been reached. The final amount raised stands at £850k following investments from 713 CrowdCube investors.
Frank Speight, honcho’s commercial director, added: “The honcho campaign has been successful in not only reaching, but exceeding its initial target investment by a third - securing a total of £850k, with funds from 713 investors.
“In addition, thanks to the exposure generated by the capital raising exercise, several new insurers and brokers have contacted us with a view to participating in the honcho initiative.”
Unlike price comparison websites, which charge insurers large commissions, insurers are said to pay honcho £1 for the right to bid as many times as they like for a single customer, allowing premiums to be reduced for drivers.
honcho aims to act as a ‘matchmaker’ between customers and insurers, initially for car insurance, but also across a range of other personal insurance products (such as home and pet) and markets.
Sewell continued: “We believe honcho can revolutionise the insurance market. It benefits both motorists and insurance companies, helping to end the blight of spiralling insurance costs which are causing misery for many.”