Des Moines’ insurance accelerator graduates first class
May 27, 2015 by Matthew Patane, mpatane@dmreg.com
Two interruptions — one from a fire alarm and the other giving the all clear — didn’t stop a series of startup pitches Wednesday in downtown Des Moines.
Des Moines’ Global Insurance Accelerator graduated its first class Thursday, with six insurance-centric startups having six minutes to show off their companies and hopefully attract some attention. For the last 100 days, the accelerator has taken six insurance-centric startups through a fast-paced program of business development.
While the accelerator was focused on insurance, Managing Director Brian Hemesath told the crowd that nine of the 12 startup founders had no prior background in the industry.
“They are innovators from outside who saw a problem they wanted to fix or an opportunity they wanted to capitalize on,” Hemesath said.
The six startups included: ClinicNote from Ames; LifeInsuranceDB from Des Moines; Tyche from San Jose, Calif.; CityMile from Brazil; Drive Spotter from Omaha; and Pablow from a combination of Australia and Germany.
The “demo day” occurred in a ballroom full of insurance professionals, potential investors and mentors during the second Global Insurance Symposium.
The symposium kicked off Tuesday, with about 350 insurance industry members signed on to attend. About 100 people, organizers said, signed up separately to attend the accelerator’s demo day.
This year’s symposium is geared around innovation and technology. In addition to the accelerator pitches, attendees have participated in talks on the use of consumer data and cybersecurity threats.
“You all have the opportunity to embrace this coming change and truly innovate. By working with emerging startups, accelerators — based in Des Moines, Iowa — and anyone else advocating for new solutions, you will create the future for your industry,” Hemesath told the crowd.
The demo day was a fairly low-key affair for a pitch event. There were no major funding announcements, blasting music or light shows to introduce each startup.
Instead of directly pitching to entice investors, the startups were going after potential customers.
“If you’re a liability insurer and you’re ready for change, we’re ready for you. Come grab us afterward and we’ll have a little chat,” said Adam Cassady, the co-founder of Tyche, which is building a predictive model for legal risk surrounding insurance claim liability.
What the startups do next relies on their founders and how well they manage attracting new customers and securing investor dollars. The accelerator isn’t quite shutting the door on them yet, however.
Hemesath said the accelerator, based out of Des Moines’ East Village, will leave its doors open to the startups for the next two months should they need the space.
The accelerator was backed by seven insurance companies. It gave each startup $40,000 in seed funding in exchange for a 6 percent ownership stake in each.
