Anorak is a smart online adviser for life insurance and income protection.
Business overview
Location | London, United Kingdom |
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Social media | |
Website | www.anorak.life |
Sectors | Finance & Payments Mixed Digital/Non-Digital Mixed B2B/B2C |
Company number | 13215050 |
Incorporation date | 22 Feb 2021 |
Investment summary
Business highlights
- Backed by leading European Fintech VCs Outward, Kamet Ventures
- Experienced founders and leaderships team (Made.com, AXA, AKQA)
- Strong traction with 20,000 users advised online in 2021
- B2B2C partnerships with The Times, Starling, Snoop, Plum, etc.
Learn more about convertible campaigns.
Idea
Introduction
We are Anorak, an award-winning online adviser transforming the way people buy life insurance and income protection. We believe everyone should have easy access to tailored and FCA regulated advice – not just the wealthy few.
In the UK, millions who need financial protection in case they die or get ill don’t have it. What’s stopping them? Lack of knowledge, unfamiliar products, too much jargon. People don’t even know where to start, so it’s no wonder it gets left on the to-do list.

We’re here to change this. We’ve built a simple, convenient, user-friendly way to get expert advice and buy the right cover, all in one place. It’s instant, unbiased and jargon-free – and it empowers people to make informed decisions when protecting their families financially.

Anorak partners with brands so that their users have access to life insurance advice while using everyday services: online bank, personal finance apps, etc.

We’ve built a unique insurance recommendation engine with infinite reach. It’s powered by proprietary algorithms and predictive machine learning models that couple data and actuarial science, making it highly scalable.

Substantial accomplishments to date
+ Online advice platform directly authorised by the FCA
+ Growing network of B2B2C partners including The Times, Starling Bank, Snoop, Plum, Trussle, and more.
+ 20,000 users advised online in 2021.
+ 100% sales growth in 2021.
+ Connected to the whole-of-market of insurers for life insurance income protection and critical illness.
+ Seasoned team of experienced entrepreneurs with a proven track record of operating high-growth businesses and financial services businesses (AXA, JP Morgan, Made.com, AKQA).
+ Backed by high profile Fintech and Insurtech VCs: Kamet, Outward Ventures, Triple Point Ventures.
+ Rated excellent (4.9/5) by our customers on Trustpilot.
+ Award-winning Insurtech company: Insurtech 100 in 2021, 2020 and 2019, Impact 25 by Oxbow Partners in 2020.
Monetisation strategy
We estimate that there is a £6.6bn commission pool ready to be seized in the UK life insurance market.
Anorak has a proven commission-based business model with strong unit economics. As a digital broker Anorak receives a commission from insurance companies each time it sells a policy.
> Commission levels in life insurance sales are high: c.£800 of commission per policy sold.
> 100% of the commission paid upfront by insurers, making Anorak’s cash model very efficient
> Capital efficient revenue sharing model with our distribution partners, limiting the risk in customer acquisition
The platform is also already commercialised as a SAAS for distributors who want to operate their own protection insurance business. Existing clients are London & Country (leading mortgage broker), Trussle (online mortgage broker), InsuranceZ (online mortgage broker).
Use of proceeds
Accelerate our B2B2C distribution by integrating with more partners.
Grow our B2C by scaling acquisition channels on selected underserved audiences - mainly income protection.
Further, invest in our tech and digital products to deepen our competitive advantage and become our users' protection companion.
Key Information
Key Terms
This investment round is being raised by way of a convertible loan note ("CLN").
The key terms that apply to the convertible are set out below and in more detail in the CLN Key Terms document available in the documents tab.
• Interest: 2.5% per annum
• Trigger events include:
o Qualifying financing: on a priced equity round raising at least £1,500,000, the notes and accrued interest will convert at the lower of (i) a 20% discount to the lowest price of shares issued in that equity round, or (ii) a price per share based on a valuation cap of £22,500,000.
o Longstop date: 30/06/2023. If conversion has not been triggered by the Longstop Date, the loan together with accrued interest will convert to shares on the lower of (i) a default share price of £0.01652 (which equates to a pre-money valuation of £12,678,865), or (ii) the lowest price of any share issued after the date of this CLN.
o Exit event: the notes together with accrued interest will convert at the lower of (i) 20% discount to the lowest price per share paid by the acquirers, or (ii) a price per share based on a pre-money valuation of £22,500,000.
Share classes
The company has six classes of shares set out below. Investors in this round will convert to the most senior class of voting share in the company, either already existing, or that is to be issued in the converting equity round, whichever ranks higher.
Liquidation preference:
On liquidation or exit, surplus assets will be distributed in the following order to each share class:
1. Series A Preference shareholders will receive 1x liquidation preference up to their initial investment amount. Ie they will receive 1x their initial investment amount back; then
2. Seed Share shareholders will then receive 1x liquidation preference, up to their initial investment amount; then
3. O1 Ordinary Share and O2 Ordinary Share shareholders, which are hurdle shares held by founders, management, and employees, will then receive, in respect of each share held, a pro-rata portion of the B2 Target Hurdle amount of £0.0194 per share; then
4. O1 Ordinary Share, O2 Ordinary Share, and B2 Ordinary Share shareholders, which are hurdle shares held by founders, management, and employees will then receive, in respect of each O1 Ordinary Share, O2 Ordinary Share and B2 Ordinary Share held, a pro rata portion of B1 Target Hurdle amount of £13,920,000; then
5. O1 Ordinary Share, O2 Ordinary Share, B2 Ordinary Share and B1 Ordinary Share shareholders will then receive pro-rata respect of each share held by them, the balance of any remaining proceeds.
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