Feather Raises €6 Million to Expand Insurance Platform for Expats Across Europe

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Navigating health insurance systems as a foreigner can be a daunting task. German startup Feather aims to simplify this process and has secured €6 million in funding to help some of the 40-plus million expats living and working in Europe.

Although there are existing options for foreign nationals to obtain insurance, they are often fragmented and difficult to navigate. Feather believes it can carve out a niche for itself despite the competition from established players.

The startup's platform provides a recommendation tool to help individuals understand what kind of coverage they might need, starting with health insurance, and also including additional options such as life, pet, automotive, and personal liability insurance.

Feather quick assessment example

Feather's quick assessment tool.Image Credits: Feather

"The funny thing is, everyone who's an expat immediately gets it," said Feather CEO Rob Schumacher. This understanding has helped the startup secure angel investments from founders who have experienced the issue firsthand, such as those from GoCardless, Monzo, and N26.

Wise co-founder Taavet Hinrikus has also invested in Feather through the VC fund he co-founded, Plural. The startup's lead investor, Keen Venture Partners, approached Feather after recognizing the potential of its platform.

However, fundraising has been a complex process for insurtech startups in the post-2021 landscape, and Schumacher is cautious about making it seem easier than it was. With conversations dragging on, Feather's founders considered pursuing profitability before securing the new funding.

International Expansion

Feather plans to use the new capital to boost its internal expansion. The startup currently serves expats in Germany, France, and Spain, with three more countries set to launch by the end of 2024.

Without additional funding, Schumacher said they would have focused on incremental growth. "That would probably have been a wasted opportunity: The startup says it achieved more in its six months post-launch in Spain than in its first 18 months in Germany."

Despite the international audience it serves, an expansion roadmap wasn't obvious for Feather, whose founders thought they might focus on a broader audience in Germany first. However, they soon realized that the expat niche was particularly interesting for a digital-first offering like theirs.

Compared to the same age cohort of locals, expats are much more likely to prefer not dealing with a broker. Feather's founders, who have experienced the challenges of being an expat firsthand, are aware that the market they are targeting is substantial and growing.

Finding Balance

To its end users, Feather promises a better experience consisting of transparent policies, unbiased recommendations, and simple digital claims processes, all in English. With its new funding, it is also taking a "big bet" on employee benefit insurance that companies hiring lots of expats may want to provide.

While it is as bullish on tech as any insurtech player, Feather is also keen not to badmouth legacy players, which it partners with, and has a couple of senior insurance executives on its cap table. This approach could pay off, or at least help the company avoid the scrutiny new insurtech partnerships are facing.