Loxa Closes £2.7 Million Seed Round to Scale Product Protection Across European Retail

Loxa, the insurtech enabling retailers to offer seamless product protection at the point of sale, today announced the successful close of its £2.7 million Seed round, completed across three tranches. 

The round was backed primarily by angels and family offices, including the Lazaroo-Hood Group, with introductions facilitated by Angel Investment Network, FundMyPitch, and the Entrepreneur's Collective. 

Capital will be deployed to drive EU expansion, scale Loxa's retail network to 150+ live partners, and broaden the platform to support every insurable product category.

“We started Loxa because we believed embedded product protection should be as universal as the checkout itself, available to every retailer, for every customer, everywhere. 

"We made a deliberate choice to build this round with angels and operators who shared our mission and backed our vision from the start, and that alignment builds better businesses. Closing this round means we can now deliver on that promise at scale, with the right people and resources to execute successfully,”

Jamie Hamer, Co-Founder & CEO, Loxa told That's Business.

Since launching in 2023, Loxa has grown to over 45 live retail partners across furniture, eyewear, power tools, electronics, catering appliances and other categories, embedding with retailers like eCatering, Toolden, Hyundai Tools, Rowen Homes, Maker & Son, and JCB Pro Tools. 

Hundreds of further retailer conversations are ongoing with merchants who recognise the value of offering their customers comprehensive product protection at the point of purchase.

The fundraise also marks a step-change in what Loxa can offer retailers. As a full-stack MGA, Loxa can now build and launch insurance schemes tailored specifically to the needs of its retail partners and their products, rather than only suggesting off-the-shelf solutions. 

Loxa’s technology connects natively to over 70% of UK ecommerce infrastructure via apps for Shopify, Magento, WooCommerce, PrestaShop, and BigCommerce, as well as direct API integrations. Loxa enables retailers to go live in as little as 48 hours, meaning the barrier to offering product protection has never been lower.

With the Seed round now closed, Loxa enters its next phase with both the capital and the leadership to execute at pace. 

Erjon Skora joined the business last year at a pivotal point as Co-Founder and Managing Dire
ctor, bringing over 16 years of experience across MGAs, insurers, financial institutions, and online marketplaces, most recently as MD and Head of Insurance & Product, EMEA at Cover Genius. His appointment reflects the ambition behind this raise: to build the defining embedded insurance platform for retailers across Europe.

“Closing the Seed is the starting gun, not the finish line. We're heading into a Series A with traction, a clear European roadmap, and a system that onboards retailers in under 48 hours, integrates seamlessly, handles policy volumes at scale, and delivers an excellent claims experience. The next 18 months will define Loxa's position in this market, and we intend to own it," Erjon Skora, Co-Founder & Managing Director, Loxa told us.

Loxa is advised by board advisors Robin Leigh, Richard Smith, Kayar Raghavan, and Ross Lazaroo-Hood. The company extends its sincere thanks to all investors, advisors, partners and supporters who have backed its vision.

https://www.loxacover.com

Prosper raises £3.2m angel round to build the Wise of Wealth-Tech

Founded by Nick Perrett (PICTURED) of digital bank Tandem, Ricky Knox of Tandem and Azimo, and Phil Bungey of Nutmeg, new wealth-tech platform Prosper plans to revolutionise how we save and invest.

Like other fintechs have done for currency exchange and banking, Prosper is building a customer champion business, because it is on a mission to maximise its members’ long-term wealth potential. It will do so by launching with the highest interest rates on cash, offering zero cost index funds* from major asset managers, and opening access to alternative private market investments that offer higher potential returns.

The founders of Monzo, Capital One, World First, Tandem, Azimo, Embark, Comply Advantage, and the Connect, MMC and Portfolio Ventures all contributed to Prosper’s £3.2 million angel round, backing the company to shake up the way people manage their wealth.

“Most people are totally unaware of what they are paying to have their money managed nor that these costs can literally cut their future wealth in half,” stated Nick Perrett, founder and CEO of Prosper.

“It’s probably the largest bill you have, but never see. Our mission is to change that for millions of people worldwide.”

“We also know just how much interest customers fail to get on their cash. We want to change that by making it easier to just keep cash on top rates. We are excited to give more back to our members, helping them get more of the life that they want.”

And it’s not just about costs. As Ricky Knox, Prosper’s co-founder and chairman notes, it’s about access to the best returns, net of those charges. Prosper believes the days of the mutual fund supermarket are over.

“The investment universe has moved on,” stated Ricky. “There are less than half the number of public companies that there were 30 years ago, and over 85% of all US companies with more than $100 million in revenue are not listed on the stock market. And yet the investment products we put money into haven’t changed!”

“Unless you’re ultra wealthy and have enough money to essentially buy access, you’re at a distinct disadvantage because you can’t access these potentially higher-yielding private investment opportunities. We want to give our members that access to level the playing field for everyday consumers.”

Early investors in Prosper’s vision include Tom Blomfield, founder of Monzo, which now has over £6 billion in deposits and 7.4 million customers, and Matt Cooper, cofounder of Capital One Bank, one of the world’s first true fintech business, which he helped grow to 2 million customers and £275 million in revenue.

Prosper’s founders’ prior experience lends itself to the challenge of building a wealth-tech:

Nick Perrett and Ricky Knox built digital bank Tandem together. It now has over £2bn in assets under management and is one of the leading purpose-driven fintechs in the UK being focused on green lending.

Phil Bungey is the former COO of Nutmeg, which is one of the most successful digital challengers in the British wealth management market. It had a customer base of in excess of 140,000 investors and amassed over £3.5 billion of assets under management before being bought by JP Morgan for £700 million in 2021.

With around 1 billion high net worth and mass-affluent investors worldwide getting a raw deal on the money they’ve earned, Prosper will be on their side, a consumer champion business that will help them to realise the full potential of the largest financial asset they have.

When you invest, your capital is at risk. ISA/SIPP eligibility and tax rules apply. Tax relief depends on your personal circumstances and current rules can change.

Alternative and Private Markets disclosure. Don’t invest unless you’re prepared to lose all the money you’ve invested. This is a high-risk investment. You could lose all the money you have invested and are unlikely to be protected if something goes wrong. Take 2 min to learn more.

* For founding members (initial offer terms apply)

https://www.joinprosper.co.uk

Creative Ways to Fund Your Start-up: Thinking Beyond Traditional Financing

Starting a new business is an exciting and challenging endeavour. 

One of the most significant hurdles for any entrepreneur is securing the necessary funding to bring their ideas to life. 

While traditional financing options such as bank loans and venture capital are readily available, there are many creative and unconventional ways to fund your start-up. 

In this blog post, we'll explore some innovative approaches to secure the capital you require.

Crowdfunding

Crowdfunding platforms like Kickstarter, Indiegogo, and GoFundMe have revolutionized the way start-ups raise money. By presenting your business idea to a global audience, you can attract a community of backers who are willing to contribute small amounts of money in exchange for early access, special perks, or a sense of supporting a promising venture.

Angel Investors

Angel investors are high-net-worth individuals who invest their personal funds in start-ups. They not only provide capital but also mentorship and valuable connections. To attract angel investors, focus on networking and crafting a compelling pitch that highlights your vision and potential return on investment.

Bootstrapping

Bootstrapping involves using your personal savings and revenue generated by the business to fund its growth. This method requires discipline and financial prudence, but it allows you to maintain full control of your company without incurring debt or giving away equity.

Grants and Competitions

Many organizations and government agencies offer grants, prizes, and competitions for innovative start-ups. These funds are typically non-repayable, making them an attractive option for early-stage entrepreneurs. Look for opportunities related to your industry and apply for them.

Strategic Partnerships

Collaborating with established businesses can provide not only financial support but also valuable resources. Seek out strategic partnerships where both parties can benefit from the relationship. This may involve co-marketing, co-development, or access to a larger customer base.

Family and Friends

Don't underestimate the power of your personal network. Family and friends who believe in your vision may be willing to invest in your start-up. But you should approach this option with caution, ensuring clear terms, expectations, and legal agreements.

Crowdsourced Loans

Online peer-to-peer lending platforms, such as LendingClub and Prosper, allow you to borrow money from individuals rather than traditional financial institutions. These loans can be more accessible and have competitive interest rates.

Pre-Sales and Product Pre-orders

If your start-up involves a physical product, consider pre-selling it or offering pre-orders to generate early revenue. This not only provides capital but also validates market interest in your product.

Strategic Alliances

Form partnerships with complementary businesses that can offer financial support, resources, or access to their customer base. These alliances can help you reduce costs and expand your reach.

Self-Financing with Side Hustles

Many entrepreneurs support their start-ups by maintaining a side hustle or freelancing. The income from these activities can be reinvested into the business until it becomes self-sustaining.

Funding a start-up doesn't always have to follow the traditional path of seeking venture capital or taking out loans. Creative approaches, such as crowdfunding, angel investors, and strategic partnerships, can provide the capital and support you need to turn your entrepreneurial dreams into reality. 

Remember that combining multiple funding sources and maintaining financial discipline can increase your chances of success. So, think outside the box and explore these innovative funding options to give your start-up the best chance at success.

https://www.lendingclub.com

https://www.prosper.com

https://www.kickstarter.com

https://www.indiegogo.com

https://www.gofundme.com

(Image courtesy of Nattanan Kanchanaprat from Pixabay)