A fast-growing Chicago startup is set to sponsor college athletes next year under the NCAA's new name, image and likeness (NIL) rules, giving $10,000 a piece to "underdog" athletes.
Auto insurance startup Clearcover announced this month that it will sponsor NCAA athletes for the 2021-22 school year, making it the first car insurance company to fund individual student athletes since the NIL rules were passed this summer, the company said.
Clearcover will focus funds toward underdog and walk-on student-athletes, the startup said, and it's giving its first $10,000 check to University of Illinois football player Tailon Leitzsey. Leitzsey, a senior, slept in his car across from the school's football stadium while working towards a walk-on spot in 2018. After working two jobs over three seasons for U of I, he earned a full scholarship from the university in April.
Clearcover said it's taking applications for future athlete endorsements, which are not limited to any particular sport.
Clearcover, which raised $200 million earlier this spring at a reported valuation of more than $1 billion, has grown to more than 300 employees. It uses artificial intelligence to make custom car coverage recommendations to customers at lower price points than tradition auto insurers. Its CEO, Kyle Nakatsuji, was a college athlete himself, as a walk on for the University of Wisconsin-Madison and University of Wisconsin-Oshkosh football teams.
Clearcover isn't the only Chicago startup making moves under the NCAA's new NIL policy. Cameo has seen college athletes join its platform to connect with fans and earn additional income, and The Player's Trunk has used its marketplace to help current college stars sell merchandise.
