VOOM, the Tel Aviv-based on-demand, telematics-based insurance platform for drones and other specialized mobility services such as e-scooters, announced it has closed a $5 million Series A funding round.
The round was led by Arbor Ventures with participation from returning investors F2 Capital, Verizon Ventures, and Kaedan Capital, as well as new partner Plug and Play Ventures. The funding brings the total amount raised to $7 million.
VOOM said it will build on the success of SkyWatch.AI, its usage-based insurance for commercial drones. In addition to drone insurance, VOOM will offer on-demand insurance for episodic mobility usage, which includes cover for e-scooters, powersports, motor boats, small planes and other modes of transport.
“With the rise of on-demand mobility services such as e-scooters, we discovered that in most cases, riders are not covered in case of an accident. And much more importantly, they are not aware of this fact,” said Tomer Kashi, CEO and co-founder of VOOM.
“VOOM will ensure that users of unique mobility platforms can grab insurance on-the-go from their mobile devices whether they ride, fly, or sail,” he added.
VOOM said it will seek to collaborate with top insurance carriers to offer users on-demand, usage-based insurance policies for multiple modes of transport. Its user-friendly app and web portal, backed by its underlying artificial intelligence-based risk analytics platform, make it easy for consumers to purchase inclusive and affordable on-demand insurance from their iOS or Android device, or via the web, said VOOM.
With the rising popularity of on-demand mobility around the world, the need for effective on-demand insurance has never been more relevant, the company said.
Reports show that e-scooter accidents are on the rise across major U.S. cities, with some doctors reporting to see as many as 10 severe injuries a week, said VOOM, noting, however, that scooter companies are not known to issue insurance policies that protect riders from liabilities and personal injuries.
Insurance platforms that do exist for alternate forms of mobility such as boats and motorcycles are largely limited to rigid, annual based plans, added VOOM.
VOOM will build upon SkyWatch.AI’s telemetry-based risk analysis engine for commercial drones, which provides users with a mobile application that sends operators real-time hazard warnings, feedback and actionable insights on how they fly.
VOOM’s new platform will collect mobility data points to analyze potential safety threats, including weather information and hazardous environments, the company said, noting that VOOM will use this data to score users’ safety and performance to customize insurance policies.
“Insurance is a given across every traditional mobility category. However, coverage offerings clearly haven’t kept up with shifting consumer behaviors and emerging risks, such as those associated with micro mobility usage,” said Lior Simon, vice president and head of Israel at Arbor Ventures, the Hong Kong-based early-stage venture capital firm. “I believe in the VOOM team’s ability to execute their vision and am thrilled for them to join Arbor’s portfolio.”