US 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 between national insurtech markets. Since then, those companies have raised hundreds of millions of dollars more.
And after a long incubation period, we’ve seen US neoinsurance players like Root and MetroMile go public. Hippo is working 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 if growth is still the name of the game in insurance technology and profits are often slim.
And other markets? The recent round of Wefox caught the attention of The Exchange. A $ 650 million insurtech bullet would have caught our attention regardless of its location. But seeing a European insurance tech startup raise that amount of cash made us wonder if there is as much money present for insurtech startups from the EU market as we’ve seen here in the US.
After all, with business-focused neinsurance providers Embroker lifting a big round this week In the United States, for example, it seems that attacking the massive, old-fashioned insurance market is a good startup sport. Why wouldn’t that concept apply to Europe?
For more information, we reached out to several venture capitalists in Europe to hear their perspectives on what is happening on the ground, including individuals from Speed up, Astorya.vc other Insurtech Gateway. To punish ourselves, we collected the biggest recent rounds from the EU insurance technology market. Go!
A quick note on insurtech exits
Venture capitalists and startup founders get paid when they generate an exit. Lately, exits in space have featured a number of IPOs.
The older a startup gets, the more it has to deal with public market investors. Crossed backdrops and the like make their appearance before the unicorns are made public. And then the old start-ups don’t have to go into the venture capital market, but into the public markets. It is a different game.
That is the impression that The Exchange had when speaking with the CEO of Root, Alex Timm, this profit cycle. He noted that technology-focused public investors don’t always take in the insurance elements of their business, while insurance investors don’t always take in the technology side of Root.