Luxury goods insurer Grace has announced a $6.4 million (€5.9 million) seed round led by FinTechCollective and Speedinvest, marking a significant milestone in the company's mission to protect high-end consumer goods. The funding will be used to scale the company's services across Europe and expand its team in product engineering.

Grace, which works with luxury brands to provide protection for purchased consumer goods, has already partnered with at least one major luxury brand in Europe, although the company declined to disclose the brand's name. The company's app allows consumers to create claims if an item is stolen or damaged, while also providing fraud detection, claim processing, and logistic coordination for brands.

The need for luxury goods insurance has become increasingly pressing in recent years, with the number of stolen luxury goods tripling in the past few years. This trend has resulted in significant costs for fashion houses, making it essential for them to adopt innovative solutions like Grace's. "There was clearly a massive gap between the service levels luxury brands promise and what happens post-purchase when something goes wrong," said Lou Dana, co-founder and President of Grace.

Grace's solution is designed to bridge this gap by providing a seamless experience for both consumers and luxury brands. The company has partnered with Chubb, a world leader in insurance, to underwrite and secure its services. According to Quentin Roy, CEO of Grace, the company's pitch to luxury brands goes beyond just offering protection – it's about elevating their brand. "We weren't just offering protection," Roy said. "We were helping elevate their brand."

The luxury goods insurance market is not without competition, with companies like Zing Cover offering specialist insurance for luxury goods. However, Roy believes that Grace stands out due to its unique intersection of embedded insurance, luxury services, and post-purchase protection. The company's seed round was also participated in by Kima, BPI France, and FirstMinuteCapital.

With the fresh capital, Grace plans to cover more than 200,000 luxury items by the end of this year. The company's expansion across Europe will be driven by its growing team in product engineering, which will focus on developing innovative solutions to meet the evolving needs of luxury brands and consumers.

The growth of the luxury goods insurance market is expected to continue in the coming years, driven by the increasing demand for high-end consumer goods and the need for innovative solutions to protect them. With its unique approach and growing presence in Europe, Grace is well-positioned to capitalize on this trend and establish itself as a leader in the luxury goods insurance space.