Reports of ‘insurtech death’ have been greatly exaggerated.
The funding environment has definitely changed from last year's euphoria, but we see this as a rationalization, not a fallback. There are strong signals that insurtech is here to stay and thrive, especially in Europe.
In our new report "The State of European Insurtech 2022,"developed together with Mundi Ventures, MAPFRE, and NN Group we bring insights and transparency on the current state and trends of European and global insurtech.
Some key findings from the report:
Insurtech funding has slightly cooled off, mostly at late stage, but there is a $6 trillion opportunity to unlock and the sector is still heavily underfunded, compared to areas of similar potential such as fintech, health, and mobility.
Europe posted its second-best quarter ever in Q1 2022 and is closing the gap with the US, which saw the strongest pullback. Asia’s growth has been flat, while Latam is starting to emerge.
Insurtech M&A keeps going strong, reaching record levels in Q1 2022, while public listings have slowed down.
Public insurtech challengers’ valuations have fallen as much as 95%. These players have faced challenges in both underwriting and distribution. Their losses are still higher than industry averages and direct distribution proved expensive. Indirect distribution is back again with a focus on agents and embedded insurance.
For a more in-depth guide on European and Global Insurtech download the whole report by clicking the button below. 👇
🇬🇧 Payments and business tech startup SumUp has raised $624M at an $8.5B valuation. The company has expanded into a wide range of business services that are used by some 4 million small and medium businesses in 35 markets.
🇺🇸 Crypto platform FalconX, a digital assets platform for institutional investors, has doubled valuation to $8B in a new funding round. FalconX allows institutions to access and manage all of their crypto strategies through a single interface, which includes trading, credit, and clearing functions. It has also created an infrastructure that allows institutional investors to tokenize traditional assets such as equities.
🇺🇸 Prime Trust, a leading provider of financial infrastructure for fintech and digital asset innovators, has raised over $100M in its Series B funding round.
Other notable fintech deals from around the globe:
🇦🇪 UAE-based prop-tech startup Huspy raised a $37M Series A round from Sequoia Capital India and Founders Fund.
🇬🇧 Playter, a buy now – pay later (BNPL) provider, has raised $55M in both debt and equity. Playter did not disclose the split between equity and debt capital.
🦄🇮🇹 Silver Lake, the global leader in technology investing, has today announced that it has entered into a definitive agreement to acquire a majority stake in Facile.it (“Facile”), the leading Italian online price comparison platform, from EQT VIII fund (“EQT Private Equity”) and Oakley Capital, a pan-European private equity firm. With the transaction, Facile will become the second Italian unicorn.
🚨 The most valuable fintech startups and scaleups don't have to have the highest Startup Signal. For example, Stripe (52) is the third most valuable fintech company, but has a lower signal than Opensea (69).
Job opportunities
🇩🇪Wefox, the world's biggest tech insurtech, is hiring for P&C Underwriting Lead and other 31 roles.
🇬🇧 Copper, a cryptocurrency custody firm, is hiring for a Software Engineer and other 39 roles.
This is Dealroom's weekly fintech newsletter. Get more industry-specific intelligence on the evolving world of fintech, emerging trends, and game-changing startups. Delivered on Wednesdays.
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