Seeking Alpha

Travelers, State Farm, And Nationwide Make $60M Bet On 3D Measurement App HOVER, Fueling E-Commerce Portal Growth

by: VCDeals

Travelers (NYSE:TRV), State Farm Ventures, and Nationwide led the $60M Series D round for 3D exterior measurement app HOVER at a $490M post-money valuation. GV (GOOG,GOOGL) and Guidewire Software (NYSE:GWRE) also participated in the funding.

HOVER allows smartphone users to snap multiple pictures of a space to create 3D images that are encoded with information about dimensions and materials that would help with a remodeling project. Founded in 2011, HOVER first found popularity among contractors, who could use the app's encoded information to create price quotes for prospective clients. The company evolved to include an e-commerce portal for contractors. More recently, HOVER has gained users in the insurance space. Large insurers are integrating HOVER into their apps to allow customers to take pictures of damages related to a claim.

HOVER has benefited from the current pandemic-driven concerns about in-home visits from contractors and insurance agents.

"As a product that eliminates the need for on-site home visits, we’ve seen growth and adoption of our technology throughout the pandemic, enabling more remote selling and desk adjusting -- allowing us to provide a better experience to homeowners," HOVER founder and CEO A.J. Altman tells Seeking Alpha.

Altman continues, "Specifically, there has been significant adoption of both virtual selling (using our 3D model to engage) and DIY capture (homeowners using HOVER to capture their own property vs. scheduling an on-site visit). That, combined with ladder assist partners like Hancock or IA firms like Crawford, has enabled carriers to significantly increase desk adjusting and improve the overall claims process."

The new funds will help HOVER enhance its 3D data platform and expand its e-commerce efforts.

"HOVER’s e-commerce expansion allows contractors to purchase all the materials (using HOVER’s 3D model with measurements and estimates) needed for the project directly in the HOVER app - making the home improvement experience a seamless process from start to finish," says Altman.

HOVER will also expand its insurance penetration by adding to its network of partners "across the insurance industry - from large national carriers to smaller regional carriers and independent adjustment firms," according to Altman.

(Image: HOVER App Store screenshots.)

Other top VC deals of the week:

  • SoftBank (OTCPK:SFTBF,OTCPK:SFTBY) Vision Fund 2 led the $100M fundraise for sales readiness software and sales enablement platform Mindtickle. Qualcomm (NASDAQ:QCOM) also participated in the round, which was primarily equity investments. Mindtickle's client list includes MongoDB, Cloudera, and Merck.
  • BlackRock (NYSE:BLK) and Chromo Invest co-led the $90M Series C for on-demand freight startup Loadsmart, which will use the funds to build out the platform to offer more end-to-end logistics services.
  • SouthBank Ventures Asia joined the $28M Series D for South Korean financial services app True Balance. The funding will help True Balance reach its goal of breaking even, then achieving profitability, and expanding to reach more customers in India.
  • GV and Thrive co-led the $26M round for Headway, which helps users find local therapists who accept insurance. The funding comes during a time when about 90% of therapist visits are virtual, according to the startup.

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