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Innovating InsurTech

Innovating InsurTech
July 27, 2021

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Call me millennial, but I looooove that I can purchase my car insurance online by filling out a simple, at times sleek, form and get a quote I can trust. The same goes for pet insurance, rental, and travel. As a freelancer, I have utilized a broker when purchasing health insurance on the ACA marketplace, but that interaction says more about the state of government websites than my desire for human connection.

As recently reported by TechCrunch, insurtech companies that have recently gone public have generated irregular returns. Lemonade has seen near 200% stock price appreciation compared to Metromile’s 64% decrease in value. According to the article, this situation may be due to the shorter timeframe that Metromile has traded publicly, or an aggressive price set when it hit the market via SPAC, but nonetheless, companies in the pipeline or considering going public are paying attention.

Let’s look at some of the innovators in boring, old insurance: 

Business Insurance

  • Next Insurance, out of Palo Alto, has been adding roughly 150 new employees each year over the last few years, as funding has come relatively easily for the company's 48-hours-or-less processing of small business insurance and subsequent claims. The company has been playing down the likelihood of going public since April after raising a $250MM equity round. The firm is valued at $4BN.

Supply Chain Logistics

  • At the other end of the spectrum is fledgling insurer PAXAFE, out of Milwaukee, WI. The company aims to predict adverse events in the supply chain in order to de-risk B2B shipments and enable intelligent cargo insurance. While the firm was pre-launch when the pandemic hit, its value proposition couldn’t be more obvious given the consequences of the last year. It last raised a $3.2MM seed round in April.

Car & Home

  • The Zebra addresses the all-too-real pain point of choosing the right home & auto policy with a very simple comparison tool. The startup features a prominent 4.8-star rating on a sparse homepage.

The Rest

  • PolicyGenius wants to make shopping for life, long-term disability, home, renters & pet insurance all very easy-breezy. The company features its phone number very prominently on its website, signaling that customer service is 💯. The startup last raised $30MM in January 2020 to expand its marketplace’s offerings.
  • Softbank just placed a $100MM investment in Ethos, a private company using data science to simplify the insurance buying experience. The company is now valued at $2.7BN.
Jam City puts the kibosh on SPAC deal 

Claiming market conditions, the company walks from the $1.2BN deal.

Toyota stalls on electric vehicle future
The OG clean carmaker is pushing back as climate regulators drive forward.
Since last week, PrivCo has added:

650 Companies | 97 Funding Activities | 81 M&A Deals

Funding & Deal Highlights:

Sendlane raises $20MM from Five Elms Capital

Email & Text Marketing • Equity • San Diego, CA

Paradromics raises $20MM from Prime Movers Lab

Neuroscience Technology • Seed • Austin, TX

Bbot raises $15MM from Charles River Ventures

Food & Beverage Payments • Round A • Jamaica, NY

Urban Remedy raises $18MM from Manna Tree Partners

Organic Food & Beverage Producer • Round D • Richmond, CA

Zone7 raises $8MM from Blumberg Capital 

Sports AI • Round A • Palo Alto, CA

Traba raises $3.6MM from The Founders Fund

On-Demand Staffing • Seed • Miami, FL

LiveControl raises $30MM from Coatue Management

AI Video Production • Round A • Santa Monica, CA

MURAL raises $50MM from Insight Partners & Tiger Global

Digital Collaboration • Round C • San Francisco, CA

Cityrow Go raises $12MM from JW Asset Management

Row Machine • Round A • New York, NY

KKR acquires Teaching Strategies 

EdTech • Acquisition • Bethesda, MD

BYJU’s acquires Epic! Creations for $500MM

EdTech • Acquisition • Redwood, City

Accurisk Solutions acquires Tandem Medical Solutions 

Insurance • Acquisition • Columbia, SC

Carlyle Group acquires Copia Power for $700MM

Renewable Energy • Acquisition • Salt Lake City, UT


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