New insurance app exceeds target

A new app which will see insurers bid against each other to secure new customers has secured investments of £850,000.

The investment window in honcho closed early due to the incredible support, after it approached crowd-funding platform CrowdCube in late November.

A conditional investment of £150,000 was made from the Finance Durham Fund, managed by Maven Capital Partners, pending a successful crowdfunding campaign.

By 5 January, and with nine days of the campaign remaining, the £650,000 target had been reached. The final amount raised stands at £850,000 following investments from 713 CrowdCube investors.

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 one of the UK’s most active private equity houses and SME finance providers, Maven Capital Partners.

‘We couldn’t be happier with how well the crowdfunding campaign has been received. It is a great example of how businesses can use alternative funding in the absence of investment from the EUI sources.

‘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.’

Frank Speight, commercial director at honcho, added: “The honcho campaign has been successful in not only reaching, but exceeding its initial target investment by a third – securing a total of £850,000, 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.’