Laka, a ‘collective-based insurer of cyclists’, has announced a crowdfunding campaign through crowdfunding platform Seedrs.
A release from the company noted…
‘Following sustained growth and a marketplace accelerated by changing transportation habits in 2020, Laka is uniquely poised to capitalise on its success and seeks to raise funds to aid its next phase of development – focusing on international expansion and product diversification.’
Currently, Laka is participating in the Seedrs pre-registration phase. This provides potential investors with an opportunity to register interest and enjoy priority investment access (from a minimum £10 investment upwards). This prior to the crowdfunding campaign opening publicly on Seedrs. The pre-registration phase closes at 10:00 GMT on 4th November 2020.
Laka has already attracted the backing of several high-profile investors including venture capital firms LocalGlobe (Transferwise, Zoopla and Citymapper) and Creandum (Spotify, Klarna and Bolt) who are both investing in Laka for a second time.
Laka adds that it has also attracted investment and the involvement of former CEOs and executives from prestigious companies such as Rapha, Fitness First, Aviva and Deutsche Bank.
According to Carl Fritjofsson, Partner at Creandum, “Laka shows what you can do when you rethink a product experience from the ground up. They have redefined the insurance experience from first point of contact, until claims settlement, and even how to monetize the relationship with their members.
“It’s an amazing thing to see creativity and innovation going after a boring and stale insurance market. We couldn’t be more excited to continue support Laka transform this massive market.”
In the UK, Laka notes that bike sales are already up 50% year on year; and, across Europe, the pandemic has ‘sparked a European cycling revolution with more than £907m spent on cycling-related infrastructure and the roll out of 1,400 miles of new bike lanes since the pandemic began.’
Laka, with its collective-based business model, feels it is positioned to grow exponentially on the back of the growth of cycling with its unique approach to insurance.
Since being formed in 2018, Laka has enjoyed impressive growth, providing insurance cover for over 10,000 bikes to a value of £26 million. In 2020, it has reported a year-to-date net revenue growth of 215%.
For its new crowdfunding campaign, investor rewards include: exclusive, Rapha-made cycling kit; Laka credit; plus, ‘the chance to access some very exciting prizes and even an exclusive invitation to Laka’s annual, online investor event.’
Tobias Taupitz, Laka CEO said “The outdated traditional insurance model is based on insurers taking your money and profiting from not paying out claims. The very thing you pay them for is what makes them more money.
“It’s insane. Insurance is the best business model in the world – just not for customers. That’s why we’ve flipped insurance on its head and created a better, fairer way of doing insurance by sharing risk in a true collective.
“Our members share the cost of all claims and we only earn our share when settling claims for the collective. Now, following years of growth, we want to grow faster and bring the collective along with us. Laka has loads of potential – that’s why we’re crowdfunding.”
He continued, “Covid-19 has accelerated a shift in behaviour away from using public transport. The time of the bike has come and we are ready for it. What’s more we have assembled a brilliant team of backers and cycle industry experts, who, together with our fast-growing collective, will ensure we maximise this amazing opportunity.”
