(Bloomberg) -- Goldman Sachs Group Inc.'s asset manager is backing startup DealerPolicy in a funding round that raised $110 million for the company, which provides auto dealers with insurance quotes for their customers.
The financing was led by Goldman Sachs Asset Management's growth equity business, and included existing investors such as 3L Capital and Hudson Structured Capital Management Ltd., according to a statement Thursday. The latest round gives the company a valuation of more than $500 million, according to DealerPolicy Chief Executive Officer Travis Fitzgerald.
DealerPolicy, which functions as an insurance agency in the lower 48 states, connects car buyers with insurance quotes. The company has written more than $200 million in premiums since 2016, and plans to use the new money to triple its product and engineering teams over the next year and boost its investments in partnerships, according to the statement. With the new funding round, Goldman's Paul Pate will join the company's board.
“We've had some level of success in a market that historically has been challenging,” Fitzgerald, who is also a co-founder, said in an interview. “That early success has led to us partnering with a little over 1,000 dealers these days nationwide.”
Before Covid-19, the majority of the company's workforce was based in Vermont, but the firm has now committed to a virtual staff and is hiring new employees across the country, according to Fitzgerald.
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