InsurTech startup Canopy has received “significant investment” from real estate investment and management firm Round Hill Capital.
The investment follows Canopy’s £1.6m second round of funding in October, which included £1.3m from Direct Line Group as well as backing from Experian.
Tahir Farooqui, chief executive of Canopy, said, “We are a business with a disruptive approach to the rental property market and the Round Hill Capital funding is a testimony to our ambitious business model.
“We are opening up a new market, so making sure that renters, landlords and estate agents understand the benefits which Canopy offers them is one of our main objectives.
“The rental property market has so many elements in which to improve, and we’re starting with trying to eliminate the antiquated requirement for a security deposit.”
Through its smartphone app, Canopy provides renters with an instant digital rental profile called RentPassport, which replaces the need for large cash security deposits with an insurance policy backed by HISCOX.
Through its partnership with Experian Canopy users can enhance their credit history by paying their rent directly through the mobile app – helping them get a mortgage when they have a deposit.