Chicago-based Kin raises $50 million at $2 billion valuation

Kin, a Chicago-based, direct-to-consumer digital home insurance company, announced it had raised $50 million in an oversubscribed Series E round at a $2 billion pre-money valuation, while also closing a $200 million debt facility. After repaying $145 million of existing debt, Kin says the combined transactions provide about $105 million in new capital to support growth, the launch of a reciprocal insurance exchange and development of new products.

The equity round was led by QED Investors and Activate Capital, with Wellington Management leading the debt financing, the company reported. Kin said the Series E brings its total primary equity raised to $286 million and nearly doubles its prior valuation of roughly $1.1 billion from its Series D round in February 2024.

The company - founded in 2016 and currently operating in 13 states - reported more than $600 million of in-force premiums, which they claim covers more than half of their total addressable market. In their statement, Kin described themselves as a business that is “profitable since 2023, delivers rapid growth and healthy operating margins, consistently exceeding the benchmarks set by Rule of 40 and Rule of X.”

According to data from re-insurance company Gallagher, the average annual cost to insurers from natural catastrophes between 2017 and 2024 was $147 billion, adding that “this suggests a 'new normal' approaching USD150 billion per year.” Swiss Re, another re-insurer suggested that some insurers had “retreated from the regulated homeowners’ insurance market”. According to Kin, this creates gaps in the market in states including California, Florida, Texas and Louisiana, which Kin can better serve due to its business model and technology.

While insurtech businesses like Kin aim to use data, automation and direct-to-consumer distribution to reduce costs and improve underwriting precision, they also face challenges.

“Insurance is a critical safety net, but it's disappearing just when people need it most,” Kin founder and CEO Sean Harper said in the statement, adding that the company uses proprietary data and analysis to assess and price risk for individual homes.

Investors echoed that message. Amias Gerety, partner at QED, described Kin’s model as a technology-driven answer to insurance issues caused by extreme weather, while Eric Meyer of Activate Capital said the company is “offering a vital financial service to homeowners who need it most”.

Despite an Illinois HQ, Kin’s footprint does not include any of the Midwest states on our site, covering Alabama, Arizona, California, Colorado, Florida, Georgia, Louisiana, Mississippi, Missouri, South Carolina, Tennessee, Texas and Virginia.