Upsie’s direct-to-consumer swing at the warranty space nets $18.2M
Upsie, a consumer warranty startup, has raised $18.2 million in a Series A round led by True Ventures.
The financing brings the total raised for the St. Paul, Minnesota-based startup to $25 million since its 2015 inception.
A large group of investors participated in the round, including Concrete Rose VC, Avanta Ventures, Kapor Capital, Samsung Next, Massive, Backstage Capital, Awesome People Ventures, Draft Ventures, Matchstick Ventures, M25, Silicon Valley Bank and Uncommon VC, among others. A number of angels also put money in the round.
Clarence Bethea (pictured below) founded Upsie after realizing the significant markup that retailers were placing on warranties.
His goal was to focus not on the retailer, but rather the end user and making the process more transparent, more affordable and simpler. For example, Upsie claims that it saves its customers anywhere from 50% to 90% compared to competitor warranty plans. Most other companies in the space, such as SquareTrade, offer warranties at the point of sale via retailers.
“I’m sure you’ve walked into a Best Buy or a Target, and when you’re checking out somebody at the register is offering you a warranty. But what most customers don’t know is that you’re paying as much as 900% more for that warranty than you should,” Bethea said. “There’s no transparency at the register and you never get to ask what’s covered and what’s not covered, or what should you do if you need to make a claim.”
Just like many other companies, (Read more...)