Whole-trip insurance startup
Faye
has raised $8 million in seed funding for its travel insurance app that lets customers file claims digitally.
Viola Ventures and F2 Venture Capital led the round, with participation from Portage Ventures, Global Founders Capital and former NBA player Omri Casspi.
Built amid the COVID-19 pandemic and launched earlier this year, Faye’s protection covers American travelers’ trips, health, belongings and pets. In the Faye app, travelers can file claims and receive reimbursement via its Faye Wallet, which works similarly to Apple Pay and Google Pay, within 48 hours.
The app also sends travelers real-time protective alerts and provides 24/7 customer support.
“Travel insurance has become synonymous with lengthy, jargon-filled policies that leave travelers confused rather than well-informed. The claims process can be slow and bureaucratic, and may require a lot of time and excessive paperwork,” says Faye co-founder and CEO Elad Schaffer.
“Faye is hitting the market as a solution to these pain points, at a time in which consumers are planning to travel more than ever before and are seeking solutions to look after them while on the road. We’re here to meet their rising expectations and transform travel insurance from a forgettable add-on to a must-have advantage that enhances the entire trip experience.”
The company says it has seen an influx of customers since launch, with the majority hoping to understand the product’s COVID-19 coverage, which includes pre- and in-trip coverage.
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With the capital injection, the startup plans to recruit talent and strengthen its technology to provide additional trip support and claim automation capabilities. It is also looking to onboard new distribution partners including online travel agencies and travel advisors.
Faye is a graduate of Google’s Growth Lab for startups, and its team comprises ex-Lemonade and ex-Allianz employees.
Its advisory board includes Mike Nelson, former CEO of Allianz, and Raija Itzchaki, former president of Generali Travel Assistance. Says Nelson: “Many companies offer travel insurance, but none have introduced a fully digital experience that eliminates the paperwork and hassle. I'm confident that the Faye team - with their paperless solution and person-first mentality - will deliver a superior, mobile experience to travelers.”
Faye is currently available on iOS and Android in 40 states with plans to roll out to all 50.