Life insurance to die for – a modern take on a traditional product
Business overview
| Location | Leicester, United Kingdom |
|---|---|
| Social media | |
| Website | deadhappy.com |
| Sectors | Finance & Payments Digital B2C |
| Company number | 08624700 |
| Incorporation date | 25 Jul 2013 |
Investment summary
Business highlights
- Super easy, super cheap and all on your smartphone
- VC backed, £5.5m to date from Octopus & eVentures
- Already at £1bn customer sum assured and growing
- Net Promoter Score of 86 and Trustpilot score of 4.9
Learn more about convertible campaigns.
Idea
Introduction
DeadHappy is a digital-first life insurance provider, disrupting the £3.7bn life market.
Our mission is to Change Attitudes to Death. We want to help people think about, talk about and plan for what they want to happen when they die.
Traditional life insurance is complex, expensive, inflexible and boring.
DeadHappy offers customers a simple, cheap, flexible and (perhaps even) enjoyable alternative. We have developed a unique pay-as-you-go life insurance product with a rolling 10 year guarantee of cover. Our simple sign-up process allows customers to answer only 4 medical questions & obtain cover in under 5 minutes, on-line, via their mobile phone.
Our proprietary Deathwish Platform inspires customers to personalise their life insurance by creating “deathwishes”, which helps them to identify their life insurance needs and gives their life insurance plan some real, tangible meaning.
Our customer feedback is overwhelmingly positive, with NPS of 86 & Trustpilot score of 4.9 from 500+ reviews.
Substantial accomplishments to date
2018.
· Launched the MVP for our pay-as-you-go life insurance product.
· Raised £1.5m Seed venture capital (Octopus Ventures).
· Partnership agreed with AA-rated insurance providers Covea and Gen Re.
· Established public company-calibre Board of Directors, including Junction co-founder and ex-Compare The Market Exec.
2019.
· Full launch of our pay-as-you-go life insurance product.
· Raised £4m Series A venture capital (Octopus Ventures and eVentures).
· Invested in our team, increasing in size from 6 to 21.
· Recognised by Forbes as one of the top 14 social marketing campaigns of 2019.
2020.
· Reached 120,000+ total deathwishes (and counting).
· 7,800+ total life insurance policies sold (as at Aug-20).
· Total cover in excess of £1bn (Aug-20).
· 255% revenue growth (July-20 vs. July-19).
· Recently launched our second product “Near Death” (Critical Illness).
· Secured our first third-party distribution partnership.
· Launched our first sponsored deathwish.
· 4.9 star (out of 5) Trustpilot rating, with over five hundred 5-star reviews.
· Net Promoter Score of 84 (vs. industry average of 11).
· Runner up in Global Insurtech New York 2020 competition.
· Launched our first TV advert featuring “Mick & Tel”.
· Recognised by Tech Nation as one of the top 15 fintechs to watch in 2020.
Monetisation strategy
Our “Deathwish Platform” provides a quick & intuitive way for customers to decide how much life insurance cover they need. Revenue is generated through:
Commission (live)
We earn upfront commission revenue for every Life Insurance and Near Death (Critical Illness) plan sold. We earn additional commission revenue when customers extend their plans annually.
Sponsorships (live)
Our platform allows businesses to advertise their product by sponsoring a “deathwish”. We charge a fixed fee each time a sponsored deathwish is selected or insured.
Distribution partnerships (Sept-20 launch)
Our platform supports co-branding of our products, for which we charge a fee each time a DeadHappy product is sold. As we take on more partners, this capability will be extended to full white labelling for big household names.
Digital wills (coming soon)
This product will allow customers to legalise their “deathwishes”. Revenue will be earned through an upfront fee & supplemented with a small annual charge.
Use of proceeds
Growth (35%)
· Pour fuel on the fire to continue our rapid growth by investing more into proven marketing channels.
· Further develop the world of our ambassadors Mick & Tel.
· Develop our Deathwish Platform including deathwish sharing and turning deathwishes into mini viral marketing machines.
Technology (30%)
· Further development of our underwriting engine, to take advantage of our unique data capability and further enhance pricing competitiveness.
· Improvements to UX to further streamline the process.
· Grow the tech team to accelerate delivery of more products and features.
Product (20%)
· Develop and launch our blockchain-powered Digital Wills proposition.
· Launch our Accidental Death insurance, making protection accessible to even more people.
Partnerships (15%)
· Finalise our white-labelling capability, so we can fully rebrand our product and tech to open up partnership opportunities with major consumer brands.
· Accelerate the on-boarding of deathwish sponsors and charities.
The company has two existing classes of share. Ordinary shares and A Shares. The A shares hold a 1 x non-participating preference right and anti-dilution rights in the event of a downround. Seedrs investors will receive ordinary shares.
Please note that the company has a £50,000 coronavirus bounce back loan and a £64,502 director's loan. The funds raised in this round will not be used to pay back these loans.
Key information
Convertible details
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 Key Terms document.
• Interest: 10% per annum starting from the first anniversary, to be converted or repaid with the principal loan amount.
• Trigger events include:
o Qualifying financing: on a priced equity round raising at least £3m, the notes will convert at a 20% discount to the lowest price of shares issued in that equity round.
o Non-Qualifying Financing: on a priced equity round raising less than £3m, the lender majority can elect to convert at a 20% discount to the lowest price of shares issued in that equity round.
o Longstop date: 2 years from the date of the CLN. If conversion has not been triggered by the Longstop Date shares will be issued on the Longstop Date at a price per share based on the lower of (i) a pre-money valuation of £24m or (ii) the lowest price of any shares issued after the date of the CLN.
Exit: notes will convert at a 20% discount to the lowest price per share at which shares are being acquired in the Exit.
Share classes
The company has two existing classes of share. Ordinary shares and A Shares. The A shares hold a 1 x non-participating preference right and anti-dilution rights in the event of a downround. Seedrs investors will receive ordinary shares.
Debt
Please note that the company has a £50,000 coronavirus bounce back loan and a £64,502 director's loan. The funds raised in this round will not be used to pay back these loans.
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