Numbers don’t lie. There is constant investor activity in the insurtech sector, from large seed and early-stage financing to giant late-stage rounds, with a few exits from the first set of venture-backed insurance unicorns. Moreover, a growing number of non-traditional investors look at insurtech every year. Insurtech companies had a fantastic fundraising year in 2021, setting dollar and deal terms records. Global investment in insurance technology (insurtech) start-ups totalled $10.5 billion in the first nine months of 2021. By the end of the year, $15.4 billion of invested capital, counting over 566 deals, was an all-time record and a 90% gain over 2020. The first quarter of 2022 was not yet a dream come true for insurtech. In 2022 we have already seen some bumper investments in the insurtech space, with Branch recently attracting a $147 million Series C tranche at a $1.05 billion valuation. YuLife snagged $120 million at an $800 million valuation in early July 2022, not to mention wefox, with an additional $400 million obtained in 2022 in Series D after getting $650 million in Series C a year before. It seems like a slight downturn has fueled the growth potential for those who can prove to have what it takes to transform the market by demonstrating a track record of technology deployment and a steady track record of increasing profitable customer acquisition.
