InsurTech continue to attract significant investor cash, pulling in a near-record $5.3 billion for the 2021 third quarter, representing a total of 472 deals. Interestingly, U.S. companies nailed down most of the cash, according to a new Forrester report.
Approximately 70 percent of Q3 venture capital and other investments went to U.S.-based companies.
InsurTech funding levels for the sector are approaching record territory so far this year. As of Q3, new financings surpassed $15 billion, more than 2019 and 2020 combined. It came in at a record $6.5 billion in Q1 2021, and almost $3.8 billion in Q2.
According to Forrester, those 472 funding rounds came from 296 investors. Half of the funding went to “enablers” – companies that promote operational improvement. The other half targeted disruptor InsurTechs such as digital insurers and comparison marketplaces. This is a reversal from past periods where disruptors drew the bulk of financings.
Median funding raised hovered around $20 million and at least 12 deals were at $100 million or more.
Here are other highlights from the report:
The full report is Forrester’s “InsurTech Fuding Roundup, Q3 2021.”
Source: Forrester