This report takes a data-driven look at global insurance tech trends with a focus on the future of insurance products and services.
Q1’21 was a record quarter for insurtech investment activity. Startups raised over $2.5B across 146 deals.
This record level of funding reflects a 180% increase compared to the same period last year, when fears of Covid-19 swelled, and a 22% increase compared to Q4’20, as investment activity steadily bounced back. In addition to funding growth, the number of deals this quarter also grew significantly, including a 52% year-over-year increase and a 42% quarter-over-quarter increase.
Q1’21 Insurtech Highlights:
- Global insurtech activity reached an all-time high, with Q1’21 being the strongest on record: In Q1’21, insurtech funding hit an all-time high of $2.5B across 146 deals — increases of 22% and 42%, respectively, from the prior quarter.
- Insurtech’s reach becomes increasingly international: Q1’21 marked the most geographically diverse set of early-stage startups in a single quarter, representing 24 countries, including Bangladesh, Estonia, Brazil, Nigeria, and the UAE. For reference, in 2020, insurtechs from 38 different countries raised investment, compared to 29 in 2016.
- There were a record number of mega-rounds, earlier on in the funding cycle: Notably, this quarter saw a record number of mega-rounds with 8 companies driving over $1.1B in funding, roughly 44% of total funding raised. While historically late-stage companies (Series D and later) typically land mega-round deals, this quarter, the majority of companies were raising Series C growth rounds, potentially an indication of expanding funding requirements earlier on in the cycle, froth in the markets, or both.
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