In 2014, the journey of what would eventually become Ondo InsurTech began in the most unassuming of settings—a shed in the HomeServe car park in Walsall, West Midlands. Back then, we were a small innovation lab with a simple but bold mandate: dream big.
Among the handful of projects we had running, one stood out—a quirky water leak detector based on a Raspberry Pi circuit board. It was handed to me by my predecessor and mentor, Greg Jackson, as he departed to start what would later become Octopus Energy. Honestly, the device didn’t look like much. The prototype device the size of a shoe box sat on my desk for a while as I pondered its potential.
HomeServe’s founder and CEO, Richard Harpin, had entrepreneurship coursing through his veins. Every time we spoke, he’d talk about creating HomeServe’s next billion-dollar business, and at the time I thought the idea sounded nuts. But Richard had a private jet, and I didn’t — so what did i know? I listened to him carefully.
As Greg left to start Octopus Energy, he gave me a parting piece of advice: read Zero to One by Peter Thiel. Thiel, a co-founder of PayPal and Palantir, is one of Silicon Valley’s most iconic investors. His book is about building innovative companies by creating something entirely new—a process he calls going from “zero to one.”
In the book, Thiel introduces a framework of seven questions to determine whether a business has the potential to succeed at a transformative scale. Intrigued, I decided to evaluate our Lab’s projects against these Seven Questions. Most checked only one or two boxes at most. Then I got to the Raspberry Pi leak detector on my desk (which would only later be known as “LeakBot”) and pondered each question in turn.
1. THE ENGINEERING QUESTION
Can you create breakthrough technology instead of incremental improvement?
The tech powering LeakBot certainly was a breakthrough idea. LeakBot wasn’t just an improvement on existing solutions—it was a paradigm shift. Traditional methods relied on moisture detection or costly shut-off valves requiring professional installation. LeakBot’s innovative use of temperature algorithms to detect even the smallest leaks, without cutting pipes, was groundbreaking. Breakthrough technology? So far so good.
2. THE TIMING QUESTION
Is now the right time to start your business?
Water damage claims have long been the most expensive for home insurers. Back in 2014, “InsurTech” was an emerging field, and the Internet of Things (IoT) was creating a buzz among insurers eager to reduce risk. The timing actually felt perfect to align with this wave of innovation and investment. Right time? Check.
3. THE MONOPOLY QUESTION
Do you have a big share of a small market?
Water damage claims cost insurers $20 billion annually, but IoT-enabled solutions for preventing such claims were practically nonexistent. LeakBot did have the potential to dominate this nascent market, with major insurers already keen to test the concept. Big share of a small market? I supposed so when the market back then was so tiny.
4. THE PEOPLE QUESTION
Do you have the right team?
The original idea came from Greg Jackson and his PhD partner Sam Bailey. Add to that the entrepreneurial mentorship of Richard Harpin, my background in product development and insurance, and the expertise of HomeServe’s vast plumbing network. By the time Mark Wood, former CEO of AXA and Prudential, joined as an advisor, we had a team that was uniquely equipped to succeed. Right team? I couldn’t imagine a better one.
5. THE MONOPOLY QUESTION
Can you create a durable market monopoly?
With a patented technology, a scalable business model, and a first-mover advantage, LeakBot could be positioned to create a defensible market monopoly. The combination of a proprietary know-how and lack of direct competition made this a strong starting point. Durable monopoly? Could be.
6. THE DISTRIBUTION QUESTION
Will your market position improve over time?
Every LeakBot installed would generate data and insights, creating a feedback loop that improves the technology and strengthens insurer partnerships. As water damage claims grew costlier, insurers would be increasingly motivated to adopt innovative solutions. Our position could get stronger. Market position improving? Absolutely.
7. THE SECRET QUESTION
Have you identified a secret others don’t see?
We actually had recognized two key secrets: first, that leaks start small and get worse over time, so early detection and repair are critical; second, that temperature algorithms could detect leaks non-invasively. Competitors relying on moisture sensors and shut-off valves hadn’t cracked this. A transformative secret? Yes.
The Road to a Billion
That realization was a turning point. We doubled down on the leak detector project… and it evolved into LeakBot.
Eventually, we spun it out into a separate company, creating Ondo InsurTech — “Ondo” meaning “temperature change” in Japanese.
In 2022, Ondo InsurTech Plc became the first InsurTech to list on the London Stock Exchange. Today, we work with 20 insurers globally, including some of the largest in the U.S.
Back in 2014, only a handful of us believed LeakBot could be a billion-dollar business. A few more folks are onboard with the idea today.
Craig Foster in 2016 talking to the Insurance Times in “The Shed” in Walsall, South Staffordshire.
From a Raspberry Pi in a Shed in a carpark in Walsall to a global company tackling $20 billion in claims—our journey so far has been remarkable.
Our market cap today is still only about £50 million, so a long way to go to $1bn… but not nearly as improbably as the step we have already taken to go from Zero to One.
