With 20 years of experience as a professional venture capital investor on his resume, Jonathan Kalman seems well positioned to deliver an expert opinion on the likely forthcoming failure rate of InsurTechs over the next few years.Executive SummaryJonathan Kalman, a founding partner of a venture capital firm focused exclusively on the insurance industry, weighs in on what it takes to be a successful innovator in the insurance industry in an interview with Carrier Management’s Guest Editor, Celent’s Michael Fitzgerald.
Despite being optimistic by nature, Kalman, a founding partner of global InsurTech venture capital fund Eos Venture Partners, expects that 95-plus percent of the InsurTechs funded in recent years aren’t likely to survive to become large, profitable businesses, nor return capital to investors. “That’s certainly the most likely outcome,” said Kalman. “The InsurTech phenomenon attracted too many startups, which attracted too much capital investing at unrealistic valuations. There is no way that all of these businesses will succeed.”