Richmond-based travel insurance startup Faye said Tuesday it had closed a $31 million Series B round that will be used toward hiring and scaling the company.
The new funding was led by Toronto investment firm Portage and included participation from Melbourne VC firm Lumir Ventures. Existing investors F2 Venture Capital and Viola Ventures — both of Israel — and San Francisco’s Munich Re Ventures also participated.
Faye has now raised $49 million since its founding in 2019, and it only launched its app for American travelers about two years ago.
The roughly 60-employee company offers customizable travel insurance, 24/7 assistance, real-time trip monitoring and alerts in addition to fintech offerings that enable payments, reimbursements and savings for travel. Along with standard coverage, Faye offers add-ons like pet care insurance for those traveling with pets, vacation rental protection for those who book accommodations on sites like Airbnb and VRBO and medical coverage for adventure travel and extreme sports.
The company has about 25 employees in Richmond, where it is headquartered in the Arts District, and has additional offices in New York, Florida, California and Israel.
Jeff Rolander, Faye’s vice president of claims, said the company is seeking to hire 40 new employees by the end of the year, including 15 in the Richmond area with roles in customer service and claims. Those additional hires will ultimately necessitate a move to new space in Richmond, Rolander said.
Faye’s annual revenue has exceeded $10 million, Rolander said, and the company expects a fivefold increase in revenue for 2024. The company hopes to reach sales of more than $100 million within two years, he said.
Along with hiring, the company said it is eyeing new partnerships with brands, travel agencies and distribution partners in its bid to scale up.
Faye offers travel insurance underwritten by United States Fire Insurance Co. and noninsurance assistance services provided by Zenner Inc. and Falck Global Assistance LLC.
Stephanie Choo, a partner at Portage, is joining Faye’s board as part of the funding deal.
