American insurance the tech market is hot and has been for years. In early 2020, to take an example, TechCrunch reported on a wave of funding events among domestic insurance markets. These companies have since raised hundreds of millions of additional dollars.
And after a long incubation period, we’ve seen neo-insurance players from the United States like Root and MetroMile go public. Hippo works to join the cohort.
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So from the perspective of venture capital activity, startup growth and exits, insurtech is proving its worth in the United States. Even though growth is the rule of the game in insurance technology and profits are often scarce.
What about other markets? Wefox’s recent round has caught The Exchange’s attention. A $ 650 million insurtech round would have caught our attention, regardless of its location. But seeing a European insurance tech startup raise that amount made us wonder if there was as much money out there for insurance startups in the European market as we have seen here in the United States. .
After all, with business-focused neo-insurance provider Embroker raising a big turn this week in the United States, to take an example, it seems that attacking the massive, outdated insurance market is a good sport of. start-up. Why shouldn’t this concept apply to Europe?
To find out more, we reached out to a number of VCs in Europe to hear their views on what is happening on the ground, including people from Accel, Astorya.vc and Insurtech Gateway. To anchor ourselves, we have brought together the most recent major series from the European insurance technology market. Let’s go!
A quick note on insurtech releases
Venture capitalists and startup founders get paid when they generate an exit. Lately, spacewalks have featured a number of IPOs.
The older a startup gets, the more it has to deal with public market investors. Cross-backs and the like are emerging before unicorns are made public. And then the old startups have to pitch not in the venture capital market, but in the public markets. It’s a different game.
That’s the impression The Exchange got while talking to the CEO of Root, Alex Timm, this cycle of earnings. He noted that technology-driven public investors don’t always review the insurance elements of his business, while insurance investors don’t always review the technological side of Root.