EverQuote, a Cambridge-based tech company that runs an auto insurance marketplace, filed for an IPO that aims to raise $75M.
Founded in 2011, EverQuote provides a data-driven auto insurance marketplace — or as the company calls it, a “personal risk marketplace." It booked $135 million in sales for the 12 months ending on March 31, 2018.The company raised $36M in a series B round in October 2016 from Stratim Capital, Savano Capital Partners, Oceanic Partners, T Capital Partners, SecondAlpha and Link Ventures.
EverQuote makes its money through referrals on its online insurance marketplace, which has over 70 carriers — including AllState, Liberty Mutual and Progressive — and more than 5,000 agencies. Its value proposition is that it’s able to match insurers with customers who fit the right risk profile because not all insurers are looking for the same kinds of customers.
“We really want to build a big company here,” Seth Birnbaum, EverQuote's CEO told BostInno in October 2016. “We have a roadmap to get to $1 billion in revenue and that’s what we’re focused on doing," he said.
While EverQuote might be on its way to a prosperous future, the industry itself is a little lackluster. The percentage of consumers shopping for personal auto insurance declined to 20% in 2017, its lowest mark in four years, likely due to reduced ad spending by insurers. Another KPMG study stated that automobile innovation including autonomous vehicles, and on-demand transportation supported by ridesharing apps will shrink the auto insurance market by 70% or $137 billion by 2050.
