The two Australian companies are part of the program’s eighth cohort of 85 start-ups that were selected from over 1,500 applications.
Tripcover chief executive Desmond Sherlock, who co-founded the business with brother Steve, told StartupSmart that they must have been selected because they’re disruptive.
“We are very unsexy, we’re just selling car rental excess cover,” Sherlock says.
“But we’re disrupting the industry. The car rental insurance companies are very unhappy with what we’re doing because we’re undercutting them by heaps, and they’re really annoyed about that.”
The funding will enable the Sherlocks to rapidly scale by launching an office in Chile to focus on the Latin American market and developing their API (code that integrates their offering within other businesses websites and offerings).
“We’ve been doing it for nearly two years, and we haven’t got any funding and we don’t do much marketing. But we’re selling 400 policies a month, and it’s doubling every two months so it’s starting to take off,” Sherlock says. “I haven’t been paying myself much and haven’t really been pushing, but now we’ve got a grant behind us we can start really going for it.”
Sherlock adds that their track record and previous start-up experiences have shaped their approach to their latest project.
“We’re approaching this as low key and practical, whereas before we had a start-up and we tried sexy, and built a bit of buzz and got a lot of funding, but it burned out,” he says.
Start-up Chile is a Chilean government initiative, with the 85 start-ups to receive access to mentoring networks, office space, a one-year visa to develop their project in the intensive accelerator process in Chile and US$40,000 of equity-free seed capital.