The US insurance Technology market is hot, and has been for years. In early 2020, for example, . reported on a wave of funding events in domestic Insurtech marketplaces. These companies have raised hundreds of millions of dollars more since then.
And after a long incubation period, we’ve seen US new insurance companies like Root and MetroMile go public. Hippo is working to join the cohort.
The exchange researches start-ups, markets and money.
Read it every morning on Extra Crunch or get The Exchange newsletter every Saturday.
From the perspective of venture capital activities, startup growth and exits, Insurtech is proving its worth in the USA. Even when growth is paramount in insurance technology and profits are often tight.
What about other markets? The recent Wefox round caught the attention of The Exchange. A $ 650 million Insurtech round would have caught our attention regardless of its location. But when we saw a European insurance technology startup raise so much money, we wondered if there was as much money for insurance technology startups in the EU market as we’ve seen here in the US
After business-focused new insurance company Embroker kicked off a big round in the US this week, to take an example, it seems that attacking the massive and antiquated insurance market is a good startup sport. Why shouldn’t this concept apply to Europe?
To learn more, we reached out to a number of VCs across Europe to hear their views on what was going on on the ground, including people from Accel, Astorya.vc and Insurtech Gateway. To ground us, we’ve rounded up the largest current rounds of the EU insurance technology market. Let’s go!
A quick note on Insurtech exits
Venture capitalists and startup founders get paid when they generate an exit. There have been a number of IPOs recently in exits in this space.
The older a startup gets, the more it has to do with public investors. Crossover funds and the like occur before unicorns go public. And then former startups don’t have to pitch the venture capital market, but the public markets. It’s a different game.
This is the impression The Exchange had with Root CEO Alex Timm on this profit cycle. He noted that public, technology-minded investors do not always understand the insurance elements of their business, while insurance investors do not always understand the technology side of root.