From start-up investment to partner
How Nationwide’s venture capital investment in Flo Technologies helped the insuretech start-up realize their goal of protecting homeowners
One in fifty insured U.S. homes have an insurance claim related to non-weather water damage each year.1
Water damage from leaky pipes is preventable—and innovative technology from one company has proven to be a potential game-changer for homeowners and insurance companies that pay for clean-up and repair.
Recently, Smart Home Water Security System startup Flo Technologies made news when faucet giant Moen purchased a majority stake in the California-based company.
Moen certainly saw the upside of Flo’s innovative technology and the peace of mind it brings to its customers.
That innovative potential to protect homeowners is what drew the attention of Nationwide’s venture capital team to Flo’s groundbreaking work back in 2018.
“We met with over a dozen companies who were working on ways to detect and notify people of leaks in their home in real-time. What we found was leak detection wasn’t enough…people wanted a device that would automatically stop the leak when it was happening to prevent damage to their homes,” said Brian Anderson from Nationwide’s venture capital team. “The work that Gabe Halimi and the Flo team were doing was a decade ahead of just about everyone else.”
The Nationwide venture capital team was so impressed with the technology that it introduced the Flo team to several of Nationwide’s various P&C business leaders later that year. The potential for the solution was so well received that Nationwide made a Series A venture capital investment in the company as part of the commitment it made in 2017 to invest more than $100 million in innovative solutions.
"Such an early stage investment in Flo Technologies by Nationwide was a validation of our technology as it applies to helping homeowners prevent water damage, and a testament to the forward-thinking team at Nationwide,” said Gabe Halimi, Flo by Moen’s chief executive officer.
Flo Technologies didn’t disappoint. In 2020, a LexisNexis study revealed that Flo water shut off systems reduced water claims by 96% - proving that Nationwide had invested wisely in Flo.
Nationwide’s venture investment is now directly benefitting Nationwide customers. Nationwide’s Private Client team recently launched a Smart Home Solution with Flo by Moen which will give their customers more control in protecting their homes.
“We were asked to support efforts in vetting new companies through testing products or services that could bring potential value to our division or our policyholders,” said Crissy Seals, senior director of Nationwide’s Private Client’s risk solutions team. “As our relationship with the Nationwide venture team has grown, it’s become a two-way street. Not only do they come to us, but we often seek them out for specific requests that originate from our clients or our underwriting team. Ultimately, collaboration through our teams is generating connections to companies like Flo by Moen which result in new technology and solutions to better protect our policyholders.”
“When Nationwide evaluates startups as potential investment partners, we look for companies that will help us live up to Nationwide’s mission of protecting people, businesses, and futures with extraordinary care,” said Erik Ross, leader of the Nationwide venture capital team. “We’re honored to have been a part of Flo by Moen’s success and look forward to exploring future opportunities that help our members.
Those interested in learning more about Nationwide’s Private Client services and how to purchase a Smart Water Shutoff system from Flo by Moen at a reduced cost can click here.