A Tampa-based tech startup focusing on the insurance industry has closed a $3 million seed-plus round.
The funding for iink Payments was led by Michigan-based Grand Ventures, with participation from Springtime Ventures, Simplex Ventures, Motivate Venture Capital and Green Egg Ventures.
The company was founded in 2017 and serves as a conduit for carriers, banks, property owners and contractors to aid communication.
"There's a big piece of what takes so long for individuals to get their money for their insurance claim," Tom McGrath, CEO and co-founder, said. "You physically have to mail the check from insurance company to you, then mail the check to the mortgage company, then wait to mail it back. Checks can get lost, or it takes weeks with the postal service."
The latest funding will go toward refining the technology and establishing partnerships with mortgage service, banks and property and casualty insurance carriers like Wells Fargo, according to McGrath. The company previously raised $2.8 million for a seed round in March of this year.
They have plans to close a Series A round in the next 12 to 14 months for an undisclosed amount.
“Billions of dollars being moved ... that require confusing lien holder approval processes when the speed of payment is critical is the way of the past; it just doesn’t make sense,” said Tim Streit, managing director of Grand Ventures, in a statement. “Communities and local economies are slower to rebuild, small businesses providing critical services struggle to survive, and families are displaced from their homes and workplaces longer. Claim severity increases for carriers, and the financed assets of the bank sit in disrepair. We’re excited someone is finally solving this problem.”
iink Payments has roughly 40 employees and while based in Tampa, has no physical headquarters and is entirely remote. McGrath is based in Colorado, while his two co-founders, Ken Lollar and Ryan Holliday, are in Tampa.
The Tampa Bay insurtech scene has had a booming funding year. Chicago-based Kin Insurance, which has a significant presence in the region, raised $82 million in March and is expected to use part of the funds to fuel local growth. Tampa-based Slide Insurance raised $100 million in 2021 and launched to the public at the start of the year. In March, it acquired $400 million in premiums from Orlando-based St. Johns Insurance Co.
