in view of the recent Judging by a number of related headlines created by insurance tech companies, you can guess that the startup category is going to be in big trouble. not a little.
As the exchange recently discovered, InsurTech’s 2021 fundraising has been strong despite some notable public market dips in the sector this year. After an active fundraising period, several U.S. insurtech startups went public in 2020 and 2021. After initially strong trading, the cohort was terminated due to falling valuations.
The exchange explores startups, markets and money.
Read it every morning on gaming-updates+ or get the exchange’s newsletter every Saturday.
After the turmoil, we expected insurance product startups to dry up somewhat, while tech startups targeting the back end of the global insurance market would be more active. and still. The latest conglomerate, Y Combinator, was made up of several insurance technology companies, and few of them actually want to write policies.
Definitely not. Our view of the mechanics of the modern insurance industry, in which Insurtech startups operate, fits well. We were very pessimistic about the rest of the Insurtech category.
can’t stop can’t stop
The insurtech startup category is not dead, which shouldn’t come as a surprise at this point. In light of the surprisingly strong performance in 2021, there is reason to believe that 2022 could bring more. Using a Crunchbase query originally put together by the news team, updated to limit it to only Q1 2021 and Q1 2022 data, here are the fundamentals for the Insurtech startup in terms of capital:
- Q1 2021: $3.209 billion in registered fundraising
- Q1 2022: $2.796 billion in registered fundraising
If you’re looking at these two numbers and wondering why we’re not laughing at the $400 million drop from last year, let us help. Venture capital data compiled by groups such as Crunchbase, Pitchbook and CB Insights correlates with the speed and depth of disclosure in the private market, which is different from the decline of public companies. They are slower and less full. Thus, we expect the number for the first quarter of 2022 to “fill in” for some time, bringing it closer to its value a year ago.
What’s more important than any fluctuations in dollar amounts are the simple facts of InsurTech’s fundraising. Not broke up. Frankly, he’s still purring. Today there is good news for startups working in space. Let’s talk about what their purpose is.