Kin Secures $145 Million in Debt Financing to Fuel Continued Growth
CHICAGO–Kin, the direct-to-consumer home insurance company built for every new normal, today announced the closing of a $145 million committed credit facility. The new facility, which was led by Runway Growth Capital LLC (“Runway”) and the Avenue Venture Opportunities Fund, L.P. (“Avenue Venture Debt Fund” or “Avenue”), provides Kin with additional capital to support the expansion of the Kin Interinsurance Network, a reciprocal exchange.
“The upsized facility enables Kin to continue innovating and reshaping the $120 billion U.S. home insurance market, while also providing us with an opportunity to grow aggressively with minimal dilution.”
Runway and Avenue were joined by Aquarian Investments, Group 1001, funds managed by Hudson Structured Capital Management, and Skyline Capital on the facility, of which a total of $100 million was funded at close. The remaining funds will be available to Kin in two tranches as the company reaches certain agreed-upon milestones. Armentum Partners was the financial advisor to Kin for the debt transaction.
“We’re pleased to work with such thoughtful and steady growth partners like Runway and Avenue who understand our needs and want to help strengthen our position,” said Sean Harper, CEO of Kin. “The upsized facility enables Kin to continue innovating and reshaping the $120 billion U.S. home insurance market, while also providing us with an opportunity to grow aggressively with minimal dilution.”
Kin is making home insurance more convenient and affordable by cutting out administrative and agent-related expenses. Customers receive a direct, frictionless experience when using Kin’s technology platform, which draws on thousands of data points to assess home risk profiles and price policies accurately. Kin’s platform also enables quick and efficient outreach to customers and claims processing in the wake of severe weather events like Hurricane Ian in Florida.
“Kin is transforming the critical market of home insurance,” said Brian Sapp, Managing Director at Runway. “We’re excited to provide the capital needed to enhance the company’s growth, to serve more homeowners in need of a new option for coverage.”
“We are pleased to partner with Kin on the new credit facility, which provides the company with additional capital to support the expansion of the Kin Interinsurance Network,” said Dan Holman, Senior Portfolio Manager at Avenue. “We believe their technology platform represents a significant advance in making home insurance more convenient and affordable, and we look forward to the company’s continued execution of its strategy.”
About Kin
Kin is the home insurance company for every new normal. By leveraging proprietary technology, Kin delivers fully digital homeowners insurance with an elegant user experience, accurate pricing, and fast, high-quality claims service. Kin offers homeowners, landlord, condo, and mobile home insurance through the Kin Interinsurance Network (KIN), a reciprocal exchange owned by its customers who share in the underwriting profit. Because of its efficient technology and direct-to-consumer model, Kin provides affordable pricing without compromising coverage. To learn more, visit www.kin.com.
About Runway Growth Capital
Runway Growth Capital LLC is the investment advisor to investment funds, including Runway Growth Finance Corp. (Nasdaq: RWAY), a business development company, and other private funds, which are lenders of growth capital to companies seeking an alternative to raising equity. Led by industry veteran David Spreng, these funds provide senior term loans of $10 million to $75 million to fast-growing companies based in the United States and Canada. For more information on Runway Growth Capital LLC and its platform, please visit our website at www.runwaygrowth.com.
About Avenue Venture Opportunities
The Avenue Venture Debt Fund seeks to provide creative financing solutions to high-growth, venture capital-backed technology and life science companies. The Avenue Venture Debt Opportunities Fund focuses generally on companies within the underserved segment of the market created by the widening financing gap between commercial banks and larger debt funds. The Avenue Venture Debt fund is part of the larger group of funds of Avenue Capital Group. For additional information on Avenue Capital Group, which is a global investment firm with assets estimated to be approximately $12.3 billion as of September 30, 2022, please visit www.avenuecapital.com.
