Special purpose acquisition company (SPAC) Spinnaker Acquisitions has finalized a reverse merger with LeakBot, a B2B InsurTech, that creates a new entity named Ondo InsurTech, the first InsurTech to go public in Britain, Tech Funding News reported Monday (March 21).
Ondo brought in more than 3.4 million British pounds (about $4.5 million) from investors, with shares valued at 12 pence per share (about 16 cents) and a market capitalization of about 8.2 million pounds (about $10.8 million). Ondo will use the fresh capital for partner development, onboarding and improving its delivery and IT systems, according to the report.
Ondo’s LeakBot device, a patented end-to-end claims mitigation system for insurers, is specifically designed to monitor any potential escape of water in homes with its “find-and-fix” solution once the device has been alerted to the presence of a leak.
The reverse merger ends Ondo’s long-standing relationship with HomeServe, the report stated.
The Association of British Insurers said water damage is the biggest driver of home insurance claims in the U.K. Insurers claim to pay 1.8 million pounds (about $2.4 million) to escape-of-water claims every day in the U.K. and $17 billion every year in the U.K. and the U.S. combined, according to the report.
“We have reached the milestone of trading as an independent public company at a time when sustainability, business and consumer financial pressures have never been greater,” said Ondo CEO Craig Foster in the report. “We have always worked with one mission in mind — to help drive sustainable risk reduction — and are excited to now scaling our existing solution while working with our home insurance industry partners to continue to drive risk reduction through innovations in InsurTech.”
Last week, InsurTech firm Policygenius raised $125 million in new growth capital that it will use to continue to invest in the growth of its core businesses of life, disability, home and auto insurance, along with new no-exam life insurance offerings and its Policygenius Pro offering.
Read more: InsurTech Firm Policygenius Raises $125M