Collective Benefits raises £3.3m seed round led by Stride.VC
Insurance platform Collective Benefits has closed a £3.3 million seed round led by U.K.-based Stride.VC, alongside existing investors Delin Ventures, Insurtech Gateway and several angels from executives at Uber, Deliveroo and Urban.
The start-up aims to tackle the growing ‘protection gap’ created by the gig economy where ‘self-employed’ workers go without basic benefits such as family leave, sick pay, mental health support and critical injury pay.
Collective Benefits is building a tech platform that gives gig works access to affordable, portable protections and benefits that they can carry around with them rather than having to tie the benefits to one employer.
The funding will help Collective Benefits growth and offering for gig platforms with a consumer service aimed at freelancers to follow later this year.
Anthony Beilin, CEO and co-founder of Collective Benefits, said in a statement: “There are six million self-employed workers in the UK, which includes both higher-paid freelancers and gig economy platform workers. Yet, neither group typically has a safety net ‚Äî no holiday pay, no family leave, no mental health support, not even paid sick days. We are building Collective Benefits so that the gig economy workers are covered by the same protections typically reserved for full-time employees.”
Fred Destin, partner at Stride.VC, said: “We’re seeing services platforms gain unstoppable momentum in every segment of our lives, from rides to food delivery to freelancing. We need a new playbook. Collective Benefits addresses one of the core challenges in this brave new world of work, using technology to design and deliver a new type of safety net to all the participants in this fast-growing part of our economy.”
The platform is also designed to boost loyalty to the gig platforms amongst the workers, as well as reduce churn and talent acquisition costs.