Home insurance startup Hippo agreed to go public by means of a merger with Reinvent Technology Partners Z which is a special purpose acquisition company (“SPAC”) that takes a “venture capital at scale” approach. They revealed that the deal values combined entity at $5 billion.
Reinvent Technology Partners Z will be renamed Hippo Holding Inc. This Transaction will help Hippo to trade publicly. Chief Executive Officer Assaf Wand of Hippo raised capital through an investment that valued the company at $1.5 billion.
Assaf Wand, Chief Executive Officer and Co-Founder of Hippo said, “We set out with a bold vision: to shift the focus of the home insurance industry back to the end customer – the homeowner. In an industry that has traditionally referred to its customers as ‘policyholders,’ Hippo has carved out its path. We’ve built products and services with a human touch to broaden home protection to include proactive, smart insurance coverage. Our guiding principle is that the best claim is one that never happens, and if it does happen, then we should make our customers’ experience as smooth as possible. The evolution of our industry must be grounded in meeting today’s customer needs. Through this strategic partnership with Reinvent and an incredible team of world-class entrepreneurs, investors, and employees, we can’t wait to transform the homeowner experience and accelerate our growth.”
Reinvent will appoint a director who will join the board of the startup. It was a part of the deal. Both the companies plan to work together for a long period of time. Both companies agreed on a long-term lock-up on founder shares for two years. Reid Hoffman, LinkedIn Co-Founder and Co-Lead Director of Reinvent said, “Guided by Assaf’s visionary leadership, Hippo is deploying impressive speed and skill to transform the home insurance industry. Hippo has created its own industry category by rewriting the homeowner experience through insurance. Reinvent’s goal has been to help build industry-leading technology companies at scale for the long-term, and we see ample opportunity to ignite growth and scale Hippo’s business; we believe that Hippo is defining a model that will set the path for years to come in home insurance. With its differentiated technology, insurance expertise, and vertical integration of homeowner services, Hippo fits squarely into our ‘venture capital at scale’ approach. Together, we will strive to create truly revolutionary outcomes for homeowners and this industry.”