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Insurtech funding in 2019 already surpasses 2018

Insurtech investing this year has already exceeded last year as the steadily climbing industry registered $1.5 billion worth of deals during the third quarter worldwide.

Year-to-date through Q3, investors have put $4.6 billion to work into 239 deals, which is already up 5 percent from all of 2018 when more than $3.95 billion was invested across 262 deals, according to a report by CB Insights and Willis Towers Watson.

Q3 saw 83 of those deals, up 20 percent from the previous quarter which had 69 deals.

Deal count was up 46 percent in the third quarter compared with the same quarter in 2018 when 57 deals closed.

Insurtech fared better than many other technology verticals during Q3. Separately, the recent CB Insights MoneyTree report showed that sectors like cybersecurity saw less than half the amount of capital invested during Q3 compared with Q2. AI funding fell 15 percent in Q3.

The majority of deals in the insurtech space during Q3 were seed and angel rounds, which is consistent with sector trends since 2012. Nearly half, or 46 percent, of all deals in Q3 were angel and seed. Series A saw the second highest deal count with 19 percent.

Later-stage rounds, including Series C, D and E, saw a 9 percent decline from Q2. There were eight deals worth more $40 million, which is down one from Q2, but there were still multiple “megarounds”.

The biggest deal included a $350 million Series E round into Columbus, Ohio-based on-demand car insurance provider Root Insurance. The round was led by Coatue and DST Global and also included investments from Redpoint Capital and Ribbit Capital, among others.

Palo Alto, California-based Hippo raised a $100 million Series D round in July. The home insurance company’s funding round was led by Bond and also saw capital from Felicis Ventures, ICONIQ Capital and Propel Venture Partners, among others.

Q3 also saw the first insurance tech deals close in both Tunisia and New Zealand.