Chilean insurtech Betterfly is eyeing Miami as a future home base after securing $125 million from investors in a series C financing round.
The startup reports it has a $1 billion valuation after the latest funding round, led by Connecticut-based Glade Brook Capital, with participation from Greycroft and Lightrock, a global impact fund focused on growth equity. Betterfly is now backed by more than $200 million in investor capital and has 500 employees.
Founded in 2018, Betterfly is an insurance benefits platform that encourages users to keep up with healthy habits, such as exercise and meditation. The idea is to empower people to take care of their own mental, physical and financial well-being, track those healthy habits, and then reward members with charitable donations and life insurance coverage.
"For example, if you walk 10,000 steps, your life insurance coverage could grow by $20 or $30," founder and CEO Eduardo della Maggiora told the Business Journal. "It motivates [users] to live healthier, happier lives and educates them on habits that could lead to longer lives."
Users can earn life insurance coverage or "Bettercoins" when they meet those wellness goals through the Betterfly app. The latter can be redeemed in the app and directed to a charitable organization of the user's choice.
Betterfly currently operates in Chile and Brazil, with plans to expand into five new Latin American markets this year and the United States, Portugal and Spain in 2023. The startup partners with small and large companies to provide the Betterfly platform to employees at a rate that begins at $4 per worker.
Most people in Latin America do not have life insurance, according to a 2020 report from the Swiss Re Institute, creating an estimated $17 trillion mortality protection gap (defined as a shortfall in financial resources if a household loses a primary breadwinner). Betterfly wants to fill that gap in Latin America and the United States, where less than half of households have individual life insurance coverage.
As a benefits corporation (B-Corp), Betterfly is a for-profit entity that also aims to have a positive social and environmental impact. Della Maggiora said Betterfly is the first Latin American B-corp to reach unicorn status, demonstrating that it's possible for businesses to raise substantial capital even when profit isn't their only goal.
"I would go as far as saying that the fact that we put social purpose at the center of everything we do – our operations, culture and brand – is the reason we have been able to grow as we have and reach several milestones that just a couple of years back would have seemed impossible," he added.
Large corporations are also on board with Betterfly's mission: Last year, the company entered the Brazilian market after partnering with Icatú, the country's largest independent insurer. It also entered a partnership with global insurance company Chubb to bring the platform to new markets in Latin America.
Now, Della Maggiora has his sights set on Miami. He's moving to the Magic City next month to open a Betterfly office in the region, where the firm will prepare for its U.S. launch. He said the company is looking to partner with American financial institutions and life insurers to help Betterfly break into the U.S. market.
"The idea is to slowly move senior team to Miami and hire locally," he added. "Miami will eventually become our global hub."
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