Hippo strikes deal with SPAC led by Reid Hoffman, Mark Pincus
March 5, 2021
Home insurance startup Hippo has agreed to go public by teaming up with a blank-check company in a deal that will value the combined entity at $5 billion.
Correction
A previous version of this news item cited an inaccurate PitchBook estimate for Hippo's valuation in connection with the company's $350 million financing. PitchBook has since withdrawn that estimate. (March 9, 2021)
- Hippo will merge with Reinvent Technology Partners Z, which counts LinkedIn co-founder Reid Hoffman and Zynga founder Mark Pincus as its lead directors.
- Hippo, led by CEO Assaf Wand, has raised over $700 million from investors including Comcast Ventures and Fifth Wall, according to PitchBook data. Last November, the company secured a $350 million investment.
- The newly combined company plans to have $1.2 billion in cash once the deal closes. That includes $230 million from the SPAC's IPO, and a $550 million PIPE led by Hippo investors Dragoneer Investment Group, Lennar and Ribbit Capital, among others. Existing Hippo shareholders are expected to own about 87% of the new company.
- Hippo is the latest in a series of insurance startups to go public. Health insurance provider Oscar recently debuted on the NYSE, and last November, auto insurance company Metromile penned a SPAC deal.
- Last week, another of Hoffman and Pincus' blank-check companies inked a deal to merge with air taxi company Joby Aviation.
Correction
A previous version of this news item cited an inaccurate PitchBook estimate for Hippo's valuation in connection with the company's $350 million financing. PitchBook has since withdrawn that estimate. (March 9, 2021)
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