Feather raises €6M to go Pan-European with its insurance platform for expats

Feather cofounders Rob Schumacher & Vincent Audoire

Image Credits: Feather

As a foreigner, navigating health insurance systems can often be difficult. German startup Feather thinks it has a solution and raised €6 million to help some of the 40-plus million expats working and living in Europe.

It is not that there are no options for foreign nationals to get insurance; there are plenty. But it is precisely because the offer is fragmented and hard to match with individual needs that Feather thinks it can carve a space for itself despite heavy competition from incumbents.

With expats often having access to the public health system of their host country, a big part of the question is where they fall into, especially during the transition periods that are increasingly common with the rise of remote work. 

It is this level of detail that the startup wants to get right, Feather CEO Rob Schumacher told TechCrunch. For instance, it provides a recommendation tool to help individuals understand what kind of coverage they might need, starting with health insurance, but also including additional options such as life, pet, automotive and personal liability insurance.

Feather quick assessment example
Feather’s quick assessment tool.
Image Credits: Feather

“The funny thing is, everyone who’s an expat immediately gets it,” Schumacher said. That helped Feather get angel checks from former founders who gained knowledge of the issue through their startups, such as GoCardless, Monzo and N26, where Feather CTO Vincent Audoire was an early employee. 

Wise co-founder Taavet Hinrikus also invested in Feather through the VC fund he co-founded, called Plural. Feather’s lead investor, Keen Venture Partners, even came inbound: It was associate Abdul Afridi, an expat himself, who approached the startup, and not the other way around, Schumacher said.

However, fundraising has been anything but painless for insurtech startups in the post-2021 hype, and Schumacher is wary of making the process sound easier than it was.

With French neoinsurer Luko coming undone in the background, and other very public insurtech woes, getting past due diligence was no easy feat. With conversations dragging on, Feather’s founders considered simply going back to pursuing profitability. “And I think that was the key thing that made us really interesting again,” Schumacher said.

International expansion

Feather went along because its new backers brought expertise on a wide range of topics, including branding, but mostly because the capital will help boost its internal expansion. The startup currently serves expats in Germany, France and Spain, with three more countries set to launch by the end of 2024. 

It wouldn’t have done this without additional funding, Schumacher said. “We would have just done more incremental stuff.” That would probably have been a wasted opportunity: The startup says it achieved more in its six months post-launch in Spain than in its first 18 months in Germany.

Despite the international audience it serves, an expansion roadmap wasn’t obvious for Feather, whose founders thought they might go for a broader audience in Germany first. However, they soon realized that the expat niche was particularly interesting for a digital-first offering like theirs. 

Compared to the same age cohort of locals, expats are much more likely to prefer not dealing with a broker. But they do still need help; as a French national, Audoire knows this firsthand, and so does Schumacher, who relocated to Germany after spending most of his life abroad.

While they are scratching their own itch, the duo is aware that the market they are going after is very large, and growing. Whether you call them expats or immigrants, the fact is that Europe’s economies seem set on hiring more foreign workers to compensate for their aging population.

Finding balance

To its end users, Feather promises a better experience consisting of transparent policies, unbiased recommendations, and simple digital claims processes, all in English. With its new funding, it is also taking a “big bet” on employee benefit insurance that companies hiring lots of expats may want to provide.

While it is as bullish on tech as any insurtech player, Feather is also keen not to badmouth legacy players, which it partners with, and has a couple senior insurance executives on its cap table. 

This, and its measured approach to fundraising and spending, could pay off, or at least help the companies avoid the scrutiny new insurtech partnerships are facing. “For the last six years we’ve been doing healthy, sustainable business, and this allows you to unlock new things, even with incumbents,” Schumacher said.

The next fintech to go public may not be the one you expected

papercraft rocket in night sky

Image Credits: drogatnev / Getty Images

Welcome to TechCrunch Fintech! This week, we’re looking at Human Interest’s path toward an IPO, fintech’s newest unicorn, a slew of new fundraises, and more.

To get a roundup of TechCrunch’s biggest and most important fintech stories delivered to your inbox every Tuesday at 8:00 a.m. PT, subscribe here.

The big story

SMB-focused 401k provider Human Interest last week announced a $267 million funding round, further paving the way for a public market listing. No timeline has been given. CFO Tripp Faix told TechCrunch: “We are looking to become a public company when the time is right.” It’s been wild watching this company grow. I first covered Human Interest when it raised a $40 million Series C in March 2020. It raised a few more rounds before BlackRock acquired a minority stake in the company in January 2023. Impressively, the company says it is “approaching cash flow break-even and has enough cash on the balance sheet to fund continued 70%+ year-over-year growth without additional capital.” Fun fact: Layoffs.fyi founder Roger Lee co-founded Human Interest in 2015 and remains a director on its board.

Analysis of the week

Fintech unicorns are getting to be about as rare as a four-leaf clover. According to CB Insights’ State of Fintech Q2 Report, the number of new fintech unicorns born in the second quarter totaled just two. For comparison, in the second quarter of 2021, 49 new fintech unicorns were birthed. Altruist, a custodian for registered investment advisors (RIA), in May raised $169 million in a Series E funding round led by investment firm ICONIQ Growth that gave it a valuation of more than $1.5 billion. And in April, Paris-based startup Pigment raised a $145 million funding round, valuing it at $1 billion just five years after its inception. The enterprise software company offers a business planning platform for large companies to visualize their past financial performance and forecast upcoming quarters. Will we see more unicorns in 2024? Scroll down to read about one more. 

Dollars and cents

Digital ledger API startup Fragment raised $9 million from fintech infrastructure executives from Stripe, BoxGroup, Avid Ventures, Zach Perret (Plaid), and Jack Altman (Lattice).

Coast, a startup that describes itself as “a financial services platform for the future of transportation,” has raised $40 million in Series B funding led by ICONIQ Growth — just four months after announcing a $25 million venture round.

Astor, a free personal finance platform for women that merges community and investing in an approachable way, raised $1.4 million.

Sam Altman-backed Slope, a Silicon Valley-based B2B payments platform offering order-to-cash workflow automation for enterprise companies, secured JP Morgan Payments as the lead in a new $65 million strategic equity and debt financing round.

Matera, a Brazilian company that provides instant payment, QR code payment and core banking software to financial institutions, received a $100 million investment from Warburg Pincus.

What else we’re writing

Indian fintech Paytm’s struggles won’t seem to end. The company on Friday reported that its revenue declined by 36% and its loss more than doubled in the first quarter as it continues to grapple with a regulatory clampdown that has significantly curtailed business at its payments bank subsidiary. 

Fast-growing payroll provider Deel has made another acquisition — its third this year. Deel has acquired Hofy, a London-based company that delivers and helps manage office equipment for remote hires. Financial terms weren’t disclosed, but a source familiar with the matter told TechCrunch that the deal was worth over $100 million.

African remittance fintech Pesa is in the final stages of acquiring the requisite licenses for rollout in the United States, having just recently launched in 27 European countries after seeing success in Canada.

High-interest headlines

Tiger Global in talks to lead $500m Revolut share deal

Inside fintech’s newest unicorn: a credit card backed by your home

Capstack Technologies acquires Edge Tradeworks

Want to reach out with a tip? Email me at [email protected] or send me a message on Signal at 408.204.3036. You can also send a note to the whole TechCrunch crew at [email protected]. For more secure communications, click here to contact us, which includes SecureDrop (instructions here) and links to encrypted messaging apps.

Disinformation may 'go nuclear' rather than 'go viral,' researchers say

Image Credits: Abigail Malate/AIP

We say something “goes viral” because we tend to think of rumors and disinformation spreading the way that an infection spreads. But these days it may be more accurate to say something “goes nuclear,” according to a new paper that models disinfo as a form of fission reaction.

As common wisdom had it even before the age of instantaneous transmission of data, “A lie can get halfway around the world while the truth is still pulling on its boots.” A pithy epigram, yes, but it’s not much help in analyzing the phenomenon.

We often reach for natural processes to represent how humans act as groups. Physically, large crowds and traffic act like fluids and are often accurately modeled as such. Other rules govern our behavior, and when it comes to spreading rumors, the spread of disease is an intuitive analogue. People act as vectors for a lie rather than a virus, and the results provide a lot of insight into how it works and how to stop it.

But the fast-paced and aggressive modern social media and news environment changes things somewhat. As researchers from Shandong Normal University in China, led by Wenrong Zheng, describe it in their paper published in AIP Advances:

The infectious disease model is not yet able to truly reflect the rumor propagation in the network. This is mainly due to the fact that infectious diseases do not propagate actively, while rumors propagate actively, and the model ignores the rationality and subjectivity of the rumor spreaders; secondly, the infectious disease model only takes into account the changes in the group size, but not the resulting social impact and potential risks.

In other words, the disease model imperfectly represents the way those “infected” by a rumor actively propagate it, rather than simply passing it to someone near them at the grocery store. And disease models are often intended to project and prevent death, but perhaps not other important metrics relevant to the study of disinformation.

So what natural process can we use instead? Scientists have proposed wildfires, swarms of insects, and collections of bouncing balls — but today’s stand-in from nature is … nuclear fission.

A quick nuclear reactors 101: Fission is when uranium atoms are forced into an excited state in which they emit neutrons, striking other uranium atoms and causing them to do the same. At a certain level of artificial stimulation, this reaction of atoms exciting other atoms becomes self-sustaining; in a reactor, this process is tightly controlled and the resulting heat from all these neutrons splitting off is harvested for power. In a bomb, however, the reaction is encouraged to grow exponentially, producing an explosion.

Here’s how the researchers map rumors onto that process:

Firstly, the initial online rumors are compared to neutrons, uranium nuclei are compared to individual rumor receivers, and fission barriers are compared to individual active propagation thresholds; Secondly, the process of nuclear fission is analyzed, and the degree of energy accumulation is used to compare the social impact of online rumors.

The rumors are neutrons, shooting off of people (atoms), which like different states of uranium have varying thresholds for activation, but upon reaching a sufficiently excited state, also become active propagators.

Image Credits: Zheng et al

This provides a few more levers and dials for modelers to manipulate when trying to figure out how a rumor will or did spread. For instance, how high energy is the rumor? What’s the concentration of less-reactive users (U238) versus users ready to be activated by a single stray rumor (U235)? What’s the rate of decay for forward propagation (neutron or retweet) and is the heat (user activity) being captured somehow?

S is stable, E is excited, L is latent (i.e. primed for reaction), G is base (i.e. returns to stability).
Image Credits: Zheng et al

It’s a rich and interesting new way to think about how this kind of thing works, and although it sounds quite mechanical, it arguably assigns its people/atoms more agency than in a passive epidemiological model or one based on fluid mechanics. People may be atoms in this model, but they’re atoms with human qualities: How resistant is one to incoming rumors, how educated is one, how quickly does one return to a receptive state for new disinformation?

Most interestingly, the overall “heat” generated by the system can be made to represent impact on society in general. And this can act as a stand-in for telling not just whether a rumor propagated, but also whether that propagation had an effect; a fission system that is excited but never reaches a chain reaction state may be understood as a rumor that was successfully managed without being outright quashed.

Of course, the researchers’ recommendation that “the government and related media should monitor the social network in real-time and check the rumor information at the early stage of rumor development and make corresponding strategies” must be considered in the context of their being under the Chinese regulatory regime. That casts the research in a slightly different light: online rumors represented as weapons-grade uranium that need close government scrutiny!

Still, it’s an exciting (if you will) new way of thinking about how information moves, duplicates, and indeed explodes in this highly volatile era.

Disinformation may 'go nuclear' rather than 'go viral,' researchers say

Image Credits: Abigail Malate/AIP

We say something “goes viral” because we tend to think of rumors and disinformation spreading the way that an infection spreads. But these days it may be more accurate to say something “goes nuclear,” according to a new paper that models disinfo as a form of fission reaction.

As common wisdom had it even before the age of instantaneous transmission of data, “A lie can get halfway around the world while the truth is still pulling on its boots.” A pithy epigram, yes, but it’s not much help in analyzing the phenomenon.

We often reach for natural processes to represent how humans act as groups. Physically, large crowds and traffic act like fluids, and are often accurately modeled as such. Other rules govern our behavior, and when it comes to spreading rumors, the spread of disease is an intuitive analogue. People act as vectors for a lie rather than a virus, and the results provide a lot of insight into how it works and how to stop it.

But the fast-paced and aggressive modern social media and news environment changes things somewhat. As researchers from Shandong Normal University in China, led by Wenrong Zheng, describe it in their paper published in AIP Advances:

The infectious disease model is not yet able to truly reflect the rumor propagation in the network. This is mainly due to the fact that infectious diseases do not propagate actively, while rumors propagate actively, and the model ignores the rationality and subjectivity of the rumor spreaders; secondly, the infectious disease model only takes into account the changes in the group size, but not the resulting social impact and potential risks.

In other words, the disease model imperfectly represents the way those “infected” by a rumor actively propagate it, rather than simply passing it to someone near them at the grocery store. And disease models are often intended to project and prevent death, but perhaps not other important metrics relevant to the study of disinformation.

So what natural process can we use instead? Scientists have proposed wildfires, swarms of insects, and collections of bouncing balls — but today’s stand-in from nature is … nuclear fission.

A quick nuclear reactors 101: fission is when uranium atoms are forced into an excited state in which they emit neutrons, striking other uranium atoms and causing them to do the same. At a certain level of artificial stimulation, this reaction of atoms exciting other atoms becomes self-sustaining; in a reactor, this process is tightly controlled and the resulting heat from all these neutrons splitting off is harvested for power. In a bomb, however, the reaction is encouraged to grow exponentially, producing an explosion.

Here’s how the the researchers map rumors onto that process:

Firstly, the initial online rumors are compared to neutrons, uranium nuclei are compared to individual rumor receivers, and fission barriers are compared to individual active propagation thresholds; Secondly, the process of nuclear fission is analyzed, and the degree of energy accumulation is used to compare the social impact of online rumors.

The rumors are neutrons, shooting off of people (atoms), which like different states of uranium have varying thresholds for activation, but upon reaching a sufficiently excited state, also become active propagators.

Image Credits: Zheng et al

This provides a few more levers and dials for modelers to manipulate when trying to figure out how a rumor will or did spread. For instance, how high-energy is the rumor? What’s the concentration of less-reactive users (U238) vs users ready to be activated by a single stray rumor (U235)? What’s the rate of decay for forward propagation (neutron or retweet) and is the heat (user activity) being captured somehow?

S is stable, E is excited, L is latent (i.e. primed for reaction), G is base (i.e. returns to stability).
Image Credits: Zheng et al

It’s a rich and interesting new way to think about how this kind of thing works, and although it sounds quite mechanical, it arguably assigns its people/atoms more agency than in a passive epidemiological model or one based on fluid mechanics. People may be atoms in this model, but they’re atoms with human qualities: how resistant is one to incoming rumors, how educated is one, how quickly does one return to a receptive state for new disinformation?

Most interestingly, the overall “heat” generated by the system can be made to represent impact on society in general. And this can act as a stand-in for telling not just whether a rumor propagated, but whether that propagation had an effect; a fission system that is excited but never reaches a chain reaction state may be understood as a rumor that was successfully managed without being outright quashed.

Of course, the researchers’ recommendation that “The government and related media should monitor the social network in real-time and check the rumor information at the early stage of rumor development and make corresponding strategies” must be considered in the context of their being under the Chinese regulatory regime. That casts the research in a slightly different light: online rumors represented as weapons-grade uranium that needs close government scrutiny!

Still, it’s an exciting (if you will) new way of thinking about how information moves, duplicates, and indeed explodes in this highly volatile era.

The next fintech to go public may not be the one you expected

papercraft rocket in night sky

Image Credits: drogatnev / Getty Images

Welcome to TechCrunch Fintech! This week, we’re looking at Human Interest’s path toward an IPO, fintech’s newest unicorn, a slew of new fundraises, and more.

To get a roundup of TechCrunch’s biggest and most important fintech stories delivered to your inbox every Tuesday at 8:00 a.m. PT, subscribe here.

The big story

SMB-focused 401k provider Human Interest last week announced a $267 million funding round, further paving the way for a public market listing. No timeline has been given. CFO Tripp Faix told TechCrunch: “We are looking to become a public company when the time is right.” It’s been wild watching this company grow. I first covered Human Interest when it raised a $40 million Series C in March 2020. It raised a few more rounds before BlackRock acquired a minority stake in the company in January 2023. Impressively, the company says it is “approaching cash flow break-even and has enough cash on the balance sheet to fund continued 70%+ year-over-year growth without additional capital.” Fun fact: Layoffs.fyi founder Roger Lee co-founded Human Interest in 2015 and remains a director on its board.

Analysis of the week

Fintech unicorns are getting to be about as rare as a four-leaf clover. According to CB Insights’ State of Fintech Q2 Report, the number of new fintech unicorns born in the second quarter totaled just two. For comparison, in the second quarter of 2021, 49 new fintech unicorns were birthed. Altruist, a custodian for registered investment advisors (RIA), in May raised $169 million in a Series E funding round led by investment firm ICONIQ Growth that gave it a valuation of more than $1.5 billion. And in April, Paris-based startup Pigment raised a $145 million funding round, valuing it at $1 billion just five years after its inception. The enterprise software company offers a business planning platform for large companies to visualize their past financial performance and forecast upcoming quarters. Will we see more unicorns in 2024? Scroll down to read about one more. 

Dollars and cents

Digital ledger API startup Fragment raised $9 million from fintech infrastructure executives from Stripe, BoxGroup, Avid Ventures, Zach Perret (Plaid), and Jack Altman (Lattice).

Coast, a startup that describes itself as “a financial services platform for the future of transportation,” has raised $40 million in Series B funding led by ICONIQ Growth — just four months after announcing a $25 million venture round.

Astor, a free personal finance platform for women that merges community and investing in an approachable way, raised $1.4 million.

Sam Altman-backed Slope, a Silicon Valley-based B2B payments platform offering order-to-cash workflow automation for enterprise companies, secured JP Morgan Payments as the lead in a new $65 million strategic equity and debt financing round.

Matera, a Brazilian company that provides instant payment, QR code payment and core banking software to financial institutions, received a $100 million investment from Warburg Pincus.

What else we’re writing

Indian fintech Paytm’s struggles won’t seem to end. The company on Friday reported that its revenue declined by 36% and its loss more than doubled in the first quarter as it continues to grapple with a regulatory clampdown that has significantly curtailed business at its payments bank subsidiary. 

Fast-growing payroll provider Deel has made another acquisition — its third this year. Deel has acquired Hofy, a London-based company that delivers and helps manage office equipment for remote hires. Financial terms weren’t disclosed, but a source familiar with the matter told TechCrunch that the deal was worth over $100 million.

African remittance fintech Pesa is in the final stages of acquiring the requisite licenses for rollout in the United States, having just recently launched in 27 European countries after seeing success in Canada.

High-interest headlines

Tiger Global in talks to lead $500m Revolut share deal

Inside fintech’s newest unicorn: a credit card backed by your home

Capstack Technologies acquires Edge Tradeworks

Want to reach out with a tip? Email me at [email protected] or send me a message on Signal at 408.204.3036. You can also send a note to the whole TechCrunch crew at [email protected]. For more secure communications, click here to contact us, which includes SecureDrop (instructions here) and links to encrypted messaging apps.

The next fintech to go public may not be the one you expected

papercraft rocket in night sky

Image Credits: drogatnev / Getty Images

Welcome to TechCrunch Fintech! This week, we’re looking at Human Interest’s path toward an IPO, fintech’s newest unicorn, a slew of new fundraises, and more.

To get a roundup of TechCrunch’s biggest and most important fintech stories delivered to your inbox every Tuesday at 8:00 a.m. PT, subscribe here.

The big story

SMB-focused 401k provider Human Interest last week announced a $267 million funding round, further paving the way for a public market listing. No timeline has been given. CFO Tripp Faix told TechCrunch: “We are looking to become a public company when the time is right.” It’s been wild watching this company grow. I first covered Human Interest when it raised a $40 million Series C in March 2020. It raised a few more rounds before BlackRock acquired a minority stake in the company in January 2023. Impressively, the company says it is “approaching cash flow break-even and has enough cash on the balance sheet to fund continued 70%+ year-over-year growth without additional capital.” Fun fact: Layoffs.fyi founder Roger Lee co-founded Human Interest in 2015 and remains a director on its board.

Analysis of the week

Fintech unicorns are getting to be about as rare as a four-leaf clover. According to CB Insights’ State of Fintech Q2 Report, the number of new fintech unicorns born in the second quarter totaled just two. For comparison, in the second quarter of 2021, 49 new fintech unicorns were birthed. Altruist, a custodian for registered investment advisors (RIA), in May raised $169 million in a Series E funding round led by investment firm ICONIQ Growth that gave it a valuation of more than $1.5 billion. And in April, Paris-based startup Pigment raised a $145 million funding round, valuing it at $1 billion just five years after its inception. The enterprise software company offers a business planning platform for large companies to visualize their past financial performance and forecast upcoming quarters. Will we see more unicorns in 2024? Scroll down to read about one more. 

Dollars and cents

Digital ledger API startup Fragment raised $9 million from fintech infrastructure executives from Stripe, BoxGroup, Avid Ventures, Zach Perret (Plaid), and Jack Altman (Lattice).

Coast, a startup that describes itself as “a financial services platform for the future of transportation,” has raised $40 million in Series B funding led by ICONIQ Growth — just four months after announcing a $25 million venture round.

Astor, a free personal finance platform for women that merges community and investing in an approachable way, raised $1.4 million.

Sam Altman-backed Slope, a Silicon Valley-based B2B payments platform offering order-to-cash workflow automation for enterprise companies, secured JP Morgan Payments as the lead in a new $65 million strategic equity and debt financing round.

Matera, a Brazilian company that provides instant payment, QR code payment and core banking software to financial institutions, received a $100 million investment from Warburg Pincus.

What else we’re writing

Indian fintech Paytm’s struggles won’t seem to end. The company on Friday reported that its revenue declined by 36% and its loss more than doubled in the first quarter as it continues to grapple with a regulatory clampdown that has significantly curtailed business at its payments bank subsidiary. 

Fast-growing payroll provider Deel has made another acquisition — its third this year. Deel has acquired Hofy, a London-based company that delivers and helps manage office equipment for remote hires. Financial terms weren’t disclosed, but a source familiar with the matter told TechCrunch that the deal was worth over $100 million.

African remittance fintech Pesa is in the final stages of acquiring the requisite licenses for rollout in the United States, having just recently launched in 27 European countries after seeing success in Canada.

High-interest headlines

Tiger Global in talks to lead $500m Revolut share deal

Inside fintech’s newest unicorn: a credit card backed by your home

Capstack Technologies acquires Edge Tradeworks

Want to reach out with a tip? Email me at [email protected] or send me a message on Signal at 408.204.3036. You can also send a note to the whole TechCrunch crew at [email protected]. For more secure communications, click here to contact us, which includes SecureDrop (instructions here) and links to encrypted messaging apps.