Insurtech Q3 2017 Startup Highlights

Q3 Startup Quarterly Highlights

INSURANCE TECHNOLOGY

November 2017

Quarterly insurance technology highlights

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This brief overview of the insurance technology sector provides three sections

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Sector Summary

Macro-level views on the state of the insurance

technology sector

Latest Activity

Major funding and exit events from the previous

quarter

Category Discovery

Deep dive into a single insurance technology

category

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Sector Summary

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14 Categories

1,422 Companies

$19B Funding

Sector stats are continuously changing, data cumulative as of September 2017

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Automotive(147 Companies)

Employee Benefits(90 Companies)

Enterprise/Commercial(146 Companies)

Health/Travel(152 Companies)

Data/Intelligence(119 Companies)

Consumer Management(93 Companies)

Education/Resources(39 Companies)

Comparison/Marketplace(407 Companies)

Infrastructure/Backend(288 Companies)

User Acquisition (112 Companies)

Life, Home, P&C(147 Companies)

P2P Insurance(32 Companies)

Product(41 Companies)

Reinsurance(33 Companies)

The Venture Scanner research platform currently tracks 1,422 insurance tech

startups with $19B in funding

The graphic above shows a random sampling of companies in each category, data cumulative as of September 2017

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Health

Auto

Life/Home

Intelligence

Employee

Comparison

Infrastructure

Enterprise

Reinsurance

Product

Consumer Management

User Acquisition

Education

P2P Insurance

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Innovation quadrant for insurance technology

Average Funding

ESTABLISHED HEAVYWEIGHTS

PIONEERS DISRUPTORS

Ave

rage

Age

This quadrant shows a relative segmentation of the categories with respect to one another, data cumulative as of September 2017Visit www.venturescanner.com to learn more about our insurance technology research platform

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VC funding into insurtech continues to slow over the last few years

Overall insurance technology funding grew at a CAGR of 36% from 2011-2016, and 2017 is currently at 55% of 2016 funding

Insurance Technology Funding Over Time

Data cumulative as of September 2017Visit www.venturescanner.com to learn more about our insurance technology research platform

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The most recent quarter has been in line with previous Q3 funding totals

The funding in Q3 2017 was 98% of the Q3 funding average over the past 5 years

Insurance Technology Funding Over Time


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Exits within the space are on a general upward trend

Quarterly insurance technology exits in 2017 are within the same range of 2016, though Q3 2017 saw 56% as many exits as Q3 2016

Insurance Technology Exit Events Over Time


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Latest Activity

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Insurance technology funding events were mostly early stage in Q3 2017

There were 40 funding events this quarter, 60% of which occurred at the Seed stage

Recent Insurance Technology Funding Round Counts

Graphs shows only the funding rounds listed thereinVisit www.venturescanner.com to learn more about our insurance technology research platform

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Seed A B C D Late Stage

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Most insurtech categories saw funding this quarter

Insurance technology startups raised $397 million over the last quarter

Quarterly Insurance Technology Category Funding

Companies are categorized by function, and therefore can exist in multiple categories. The total amount is for unique companies onlyVisit www.venturescanner.com to learn more about our insurance technology research platform

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Recent insurance technology funding events

Notable Recent Insurance Technology Funding Events

Company Funding Type Amount Date

Series B $159,000,000 July 19, 2017

Series B $40,000,000 Sept 19, 2017

Series B $23,500,000 Aug 22, 2017

Series B $19,000,000 Aug 23, 2017

Series B $16,000,000 July 27, 2017

Insurtech companies raised $400M this quarter, with the top 5 events accounting for 65% of quarterly funding

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Recent insurance technology exit events

Notable Recent Insurance Technology Exit Events

Company Acquirer Amount Date

$4,900,000,000 July 7, 2017

$150,000,000 Sept 13, 2017

$104,000,000 Sept 7, 2017

Unknown Sept 6, 2017

Unknown Aug 16, 2017

There were 5 insurance technology exits this past quarter, all of which have been acquisitions



Category Discovery – Health Insurance

Every quarter a new category will receive a deep dive, providing comparisons to other categories and discussing trends

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Health insurance is one of the leading categories within the insurtech sector

The health insurance category accounts for 29% of funding in the sector, 8% of total companies, and saw mild growth last quarter

Venture Investing in Insurance Technology

Companies are categorized by function, and therefore can exist in multiple categories. Data cumulative as of September 2017Visit www.venturescanner.com to learn more about our insurance technology research platform

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Previous Total Quarterly Funding Percent Growth


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Companies within health insurance are generally better funded than their peers

Health insurance has a median funding $5M higher than the average of other categories, and a third quartile that is $22M higher

Insurance Technology Category Funding Quartiles

Companies are categorized by function, and therefore can exist in multiple categories. Data cumulative as of September 2017Visit www.venturescanner.com to learn more about our insurance technology research platform

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Current year health insurance funding amounts are slowing

Overall health insurance funding grew at a CAGR of 116% from 2011-2016, and 2017 is currently at 36% of 2016 funding

Health Insurance Funding


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Funding Events


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Health insurance funding amounts have trended from Series A to Series B

Health Insurance Funding Amount By Round

While recent quarters have been lower than previous highs, Series B financings accounted for 55% of total VC funding in the past quarter

Graphs shows only the funding rounds listed therein. Data cumulative as of September 2017Visit www.venturescanner.com to learn more about our insurance technology research platform

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Seed A B C D Late Stage


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Funding within health insurance is highly concentrated

Health Insurance Companies with Large Funding Amounts

Company Latest Round Amount Location

Post IPO Equity $4,750,000,000 China

Series A $935,000,000 China

Private Equity $727,500,000 New York, USA

Series C $584,000,000 San Francisco, USA

Series D $425,000,000 San Francisco, USA

The top 5 health insurance companies account for 75% of total category funding



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