Product Protection Startup Clyde Raises $41M Led by Headline

Product protection startup Clyde has raised $41 million, including $25 million in a Series B funding round and $16 million in working capital, led by Headline, with participation from Vulcan, Spark Capital, Crosslink and other investors.

The fresh infusion of capital will be used to help small and medium-sized businesses (SMBs) develop product lifecycle programs to boost their bottom line while also driving customer loyalty, Clyde said in an email sent to PYMNTS.

Co-founded in 2017 in New York by Brandon Gell, who serves as CEO; Josh Scaglione, chief technology officer; Jerome Holiman, vice president of people operations; and Nick Scaglione, the startup connects small firms to insurance companies to launch and manage product protection programs.

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The company rolled out its core offering of an extended warranty product in 2018, and then went on to add a unified claims management tool for merchants that would serve their customers’ product issues.

“When we launched our extended warranty solution, it was always our intention to use that as a foundation for our complete product lifecycle platform,” Gell said. “The funding will enable us to execute on this vision. We’ve already proven we have the tools to do this by helping merchants drive an extended warranty attachment rate that is 4x the industry average. We will continue to build on this success as we reshape what it means for merchants to engage with consumers throughout a product’s lifecycle.”

The new funds will also be used to help Clyde advance its strategy of helping merchants make the most of the performance of their lifecycle program as well as to increase the longevity of the relationships they have with their customers.

Read more: How Extended Warranties Help Consumer Conversion

“Looking at the market, there is an inherent gap in the product lifecycle — where the purchase of a product and the post-purchase experience of that product are disconnected,” said Mathias Schilling, co-founder and managing partner, Headline. “By building out a complete product that addresses this void, Clyde is solving a critical need for everyone involved in the transaction. That vision and the company’s incredible team are just two of the reasons we are excited to partner and invest in Clyde.”