American Family Ventures has launched a new $213 million fund that invests in early stage InsurTech startups.
“The insurance industry is embarking on profound transformation,” AFV managing director Dan Reed, managing director said in prepared remarks. “We can help [the fund’s limited partners] capitalize on this moment – both by understanding the potential of startups and by connecting them with the startup world in mutually beneficial ways.”
The fund – AFV Fund III – is backed by multiple limited partners, who represent more than $100 billion in assets and over $25 billion in annual premium across Personal Home and Auto, Commercial Lines, Life and Annuity, and Employee Benefits, AFV said.
AFV invests in early-stage startups focused on insurance and adjacent industries, such as artificial intelligence, mobility, and enterprise software. Originally formed in 2013 as the venture capital arm of American Family Insurance, AFV has invested $172 million in 65 startups over the past eight years with 16 successful exits, including an IPO and acquisitions by Google, Amazon, and Apple, the fund announcement noted.
Investments include Ring, which is centered around a home security system; CoverHound, an auto insurance quoting platform; and Bunker, a startup digital agency for gig workers.
The AFV’s Fund III portfolio includes digital insurance companies Branch and Clearcover; Wyze, a smart home device manufacturer; and Bold Penguin, a commercial insurance platform.
Source: American Family Ventures