Internet of Things (IoT) startup Notion has raised $3.2 million in funding, provided by XL Innovate and Liberty Mutual Strategic Ventures.
The funding comes two years after Notion started a Kickstarter to sell smart sensors that can track broken windows, water leaks, and unauthorized access to the house. Backers started receiving their sensors in February, though some are still waiting.
For Liberty Mutual, Notion could prevent water leaks or burglaries from getting out of hand, lowering the amount insurers have to pay and potentially lowering the cost of insurance for homeowners.
This has already happened, State Farm and other insurers provide lower rates for homeowners that own a Nest thermostat or smoke detector.
“We’ve received a lot of interest from insurance companies,” said Brett Jurgens, CEO of Notion, to Denver Post. “A big part is the insurance companies are interested in decreasing water leaks and (increasing) home security adoption. The benefit passes on to customers.”
Notion handles a lot of tasks
Part of Notion’s appeal is the variety of things the smart sensor can do. In the Kickstarter video, Jurgens mentions acceleration, moisture, sound, temperature, light, orientation, natural frequency, and proximity. It can track the amount of propane left in a tank, whether the garage door is unlocked, and if a safe is opened.
The investment in Notion is only the start for Liberty, which set aside $150 million for insurance tech groups. The company’s first IoT investment was August Home, one of the most popular smart locks.
We are going to see more of these insurance-technology partnerships, and this might prompt a quicker IoT adoption rate from customers that want lower insurance rates. It may also go the other way though, if customers are worried about their private data getting into the hands of insurers.