Grupo Prisma, Albatross Capital, and Katapult Impact invested US$8.5m in Burn to Give, a socially responsible Chilean insurtech focused on providing life insurance to underprivileged families and incentivizing policyholders’ wellbeing with subsidized coverage.
(Contxto) Chilean insurtech Burn to Give is giving the Latam ecosystem plenty of reasons to celebrate.
On Saturday (18), the startup announced it closed its Series A for US$8.5 million. Investors included Albatross Capital, Grupo Prisma, and Norwegian Katapult Impact. Angel investors from J.P. Morgan, Endeavor, among other organizations also pitched funds.
Burn to Give will use the investment to further develop its insurance platform and scale into more markets.
Burn to Give better life insurance
What if told you you could get a better life insurance policy if you took better care of yourself?
And what if I told you you could feed underprivileged families by exercising?
No, it’s not just a matter of altruism. These premises are at the heart of Burn to Give’s product and business.
“For every step you take, we give you an extra peso in life insurance coverage, at no cost,” said Eduardo della Magglora, Founder and CEO at Burn to Give. “And for every calorie you burn while exercising, we turn it into a calorie in food for children and families in need.”
The startup’s app compiles the health-related information you put into it or a third-party exercise app to evaluate your active (or inactive) lifestyle. The more exercise you put in, the greater the benefits in terms of life insurance and feeding the hungry.
It’s worth noting that for the moment it only operates as a B2B. However, companies interested in corporate wellbeing and giving will certainly be drawn to the startup.
It’s not about the money
“We’re very happy to have raised the round even within the very unusual circumstances caused by Covid-19 and several milestones along the way,” said della Magglora in written correspondence with Contxto.
Rightly so, the startup reports it’s the biggest Series A ever raised by a Chilean startup plus, it became a US-based Public Benefit Corporation (PBC). Why is being a PBC something worth celebrating?
Companies that are legally registered as PBCs are set on making a profit. But because it’s established in their charter, they’re also obliged to consider the effects the business could have on society.
Meaning it’s not just about the money, but also a matter of being accountable for generating a positive impact.
Della Magglora also reported it’s the second-largest Series A raised by a PBC (first place goes to Insurtech Lemonade who closed US$13 million in 2016).
Proof that profits and accountability for doing good do go hand-in-hand and are not just an idealistic view, but a model worth investing in.