EXTRASJAR GOES PUBLIC WITH ITS CROWD-SOURCE FUNDING CAMPAIGN WITH A MISSION TO REVOLUTIONISE INSURANCE
SEPTEMBER 2022: ExtrasJar has launched its crowd-sourced funding campaign to the public on the Birchal platform. The company’s mission is to provide revolutionary peace of mind for the entire family by combining the best of banking, investments, and insurance into new and innovative financial products.
John Connor and Reece Frazier, the co-founders of ExtrasJar, set up the company after being frustrated by the lack of value for money Australians were getting from their insurance, particularly health insurance and health extras.
“I’ve worked as an insurance actuary for nearly 20 years for some of Australia’s biggest banks and insurance companies – so I know how much money is being taken from hardworking Australians. When you buy a health extras policy, that’s exactly what’s happening, you’re paying extra. 12.5 million Australians pay $12 billion towards ‘extras cover’ and only get $5.6 billion back in benefits*. That’s why we launched our revolutionary health extras product first in July 2022.” John said.
With ExtrasJar’s health extras product, customers can save to pay for health extras. Savings are invested into the ExtrasJar Managed Investment Scheme. Customers can access their investment units at the point of sale to pay for treatments using their ExtrasJar Mastercard®. The business model, which the pair believe to be a world-first, rewards people who are healthy with a nest egg they can draw upon when they need it most.
“Extras is just the beginning, and we are now focusing on launching a private health insurance product as well as pet insurance, so our furry friends are also protected. Our insurance products will feature a self-insurance deposit feature which can be used to lower premiums. Think of it like a bond you’d pay a landlord upfront if you rent a property, if you don’t claim you get your bond back.” Reece said.
“We are excited that our customers also want to be shareholders and they are passionate about what we are doing. During the private round of the raise, the company hit its minimum raise target in two hours.” John said. ExtrasJar, which has been granted its own Australia Financial Services Licence, will use the funds from the raise to scale and accelerate growth and roll out a suite of new products.
Earlier this year, ExtrasJar completed a seed round with Sydney Angels as the lead investor, giving the company access to a network of advisors to help support the company through its build phase. Adrian Bunter, management committee member Sydney Angels and executive director, Venture Advisory, said ExtrasJar is shaking up the insurance industry. “Over the last two years I have had access to over 2,000 early-stage investment opportunities, and out of all those, ExtrasJar stood out as one of the best companies I’ve seen. We are expecting big things” Bunter said.