Our snapshot of early-stage insurance tech investment shows that year-to-date funding in 2015 already tops investments in all of 2014 by 43%.
In May, Generali CEO Mario Greco warned that the insurance sector was “on the verge of a revolution.”
Because early-stage companies offer a sneak peek into where a market is going from a disruption and innovation perspective, we analyzed CB Insights data around how early-stage activity in the insurance tech market is trending. And according to the data, early-stage investment activity is booming, a signal that technological change is coming to the insurance industry.
Of note, funding to early-stage insurance tech startups (Seed/Series A) has topped over $350M this year through 10/22/15. That’s a 43% jump from all of 2014 and a 247% rise over 2013.
Early-stage deal count in 2015 year-to-date has also already topped 2014’s high.
US takes 3 of 4 early-stage insurance tech deals
74% of early-stage deals to insurance tech startups since 2011 have gone to US-based startups. Germany and the UK topped all international markets for early-stage insurance tech activity over the period, but the latter took just 3% of overall early-stage deals. Rob Moffat of UK-based Balderton Capital has blogged on the relative dearth of entrepreneurs taking on digital insurance.
Within the US, California takes half of all early-stage insurance tech deal activity since 2011, including deals to Hixme, Stride Health, and SimplyInsured among many others, followed by New York at 17%. Massachusetts early-stage rounds out the top 3 at 6%.
Early-stage deal sizes bump up
The median round size across all early-stage insurance tech deals bumped up to $2.3M in 2014 from $1.1M in 2011. In 2015 year-to-date, the median early-stage insurance tech deal size has stood at $2.1M.
Which startups are receiving early-stage funding?
Below is a cross-section of currently early-stage insurance tech startups. Health benefits tech is most prominent area for early-stage deal activity in insurance tech, but early-stage deals have also gone to SaaS products for insurance fraud, as well as usage-based insurance sensor tech, and insurance data analytics.
|Company||Description||Total Funding ($M)||Select Investors|
|(Clover Health)||Analytics-driven health insurance model for Medicare Advantage members||$ 100.0||First Round Capital, Athyrium Capital Management|
|(One)||Integrated software for property & casualty insurers||$ 16.7||AGI Partners, Camp One Ventures, H&Q Asia Pacific|
|(Healthcare.com)||Search and comparison engine for personal health insurance plans||$ 15.6||Jeffrey Boyd, Robert Mylod Jr., Monster Venture Partners|
|(Stride Health)||Health insurance recommendation engine||$ 15.4||F-Prime Capital, New Enterprise Associates, Venrock, Kleiner Perkins Caufield & Byers, Mayo Clinic, Mohr Davidow Ventures|
|(Lumity)||Data-driven health benefits platform for small business employers||$ 14.0||Social Capital, True Ventures, Rock Health|
|(Hixme)||Tech-enabled private benefits exchange||$ 11.2||Kleiner Perkins Caufield & Byers|
|(Censio)||Smartphone-only usage-based insurance platform||$ 10.0||Bain Capital Ventures, General Catalyst Partners, Lakestar|
|(BeneStream)||Software helping employers enroll workers in Medicaid||$ 9.6||BlueCross BlueShield Venture Partners, Sandbox Advantage Fund, Kapor Capital, Relativity Healthcare Partners|
|(SimplyInsured)||Health insurance marketplace for small businesses||$ 8.4||AltaIR.VC, Bessemer Venture Partners, Corazon Capital, Polaris Partners, Y Combinator, Starling Partners|
|(Sherpaa Health)||Virtual doctor and health insurance guide||$ 8.0||Draper Associates, Softbank Capital, O’Reilly AlphaTech Ventures, First Round Capital, Collaborative Fund, SV Angel|
|(QuanTemplate)||Business intelligence and data management software for insurance firms||$ 8.0||Allianz Digital Corporate Ventures, Anthemis Group, Route66 Ventures, Transamerica Ventures|
|(PolicyGenius)||Online insurance brokerage for life, pet, renters, and long-term disability insurance||$ 6.0||AXA Strategic Ventures, Karlin Ventures, Susa Ventures, Transamerica Ventures|
|(Eligible)||Eligibility and payment APIs for medical services||$ 4.8||Andreessen Horowitz, Rock Health, Deerfield Management, Y Combinator|
|(Limelight Health)||Mobile quoting platform for health insurance agencies||$ 3.3||AXA Strategic Ventures, MassMutual Ventures, Launchpad Digital Health|
|(Shift Technology)||SaaS designed to detect potential insurance fraud||$ 1.7||Iris Capital, Elaia Partners|
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