This article explores the investment journey of Shaun Quincey and Damon O'Neill, co-founders of insurtech startup Simfuni, alongside insights from GD1 co-managing partner John Kells.
Background
Quincey and O'Neill launched Simfuni in August 2022 to streamline payment processing and back-office receivables for insurance providers. The co-founders previously created GenoaPay, a buy-now-pay-later platform sold to Latitude Financial Services in 2018.
The Seed Round
Simfuni closed a $2.8 million seed round in May 2023, with Icehouse Ventures as the largest shareholder and GD1 as the price-setter. Quincey and O'Neill each hold approximately 30%, while Icehouse Ventures holds 15.55% and GD1 holds 12.2%.
Due Diligence Approach
When selecting investors, Quincey prioritised New Zealand-based firms and conducted thorough research by speaking with other portfolio founders. He sought partners who would "buckle them in" for the demanding startup journey rather than those focused primarily on their own interests.
Kells emphasised that initial impressions matter significantly. He performed due diligence on the founders as individuals — assessing their integrity, relationships, and openness to feedback. He particularly valued meeting the broader team, noting that "founders who speak eloquently but don't introduce investors to their team" raise concerns.
Values Alignment
Both parties stressed the importance of investor-founder value alignment. Quincey cautioned against VCs demanding lead positions, suggesting this signals self-interest over company success. He highlighted how New Zealand's small ecosystem benefits from collaborative investor relationships.
GD1 prioritises selective investing over deal volume. With $150 million across its generalist B2B Fund 3 for 20–22 companies, the firm focuses on deep engagement rather than breadth.
Ongoing Partnership Model
Kells maintains weekly contact with Simfuni's founders as a board observer, discussing strategy, customer connections, and founder wellness. GD1 also provides fractional executive support through operating partners with Silicon Valley and New York experience, helping startups maximise cash runway.
Key Investment Principles
Both parties identified essential relationship components:
- Quincey: Trust, communication, and confidence
- Kells: Integrity and reputation, emotional and intellectual intelligence, and resilience in communicating both successes and difficulties
