Deals

ProspX grabs $1.9M to be the business insurance matchmaker

Rarely does one come across a company successfully putting the the words “social” and “commercial insurance” together, but Austin, Texas-based ProspX did just that. It also just got a fresh $1.9 million of a planned $2.4 million round to keep improving business insurance.

ProspX quietly filed a Form D to the US Securities and Exchanges Commission on March 4, 2014.

The document we spotted doesn’t offer up very many details, but it does show that the company still has about $525,000 left to raise and that it’s offering a combination of debt, options, and securities to be acquired upon exercise of an option. It also lists 21 investors up to now.

ProspX is a website that connects agents, brokers, and insurance carriers. Its flagship product, InsiderConnect, aims to help brokers efficiently access information and resources while enabling carriers “to¬†elevate their message for increased visibility at the initial point of an opportunity,” according to the company website.

The Texan company has had a lot of financial activity since its inception in 2008. After raising its first round, of $6.5 million, at the end of 2008, it received $2.5 million in debt financing a little over a year later in March 2010.

It then brought in $8 million in funding in February 2011, followed by another $1.5 million two months later, $8.25 million two years later, most recently another debt financing round of $1.25 million this past January.

We’ve reached out to the company and will update this post if and when we get a response, but from the outside, this new round could signal some financial difficulties for ProspX. Otherwise why raise a small round like this after having raised more than $25 million in equity funding plus a $1.25 million debt round just two months ago?

ProxpX has offices in Austin, Chicago, and the Ukraine, and was founded in 2005. Previous institutional investors include Adams Capital Management and HPI Group.

More information:

ProspX was founded in 2005 by industry veterans that saw a unique opportunity to improve many of the inefficiencies that exist in today's 500 billion dollar a year commercial insurance industry. Our mission is to transform the complex ... read more »

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