Arbol, a U.S.-based insurtech platform specifically for parametric products, announced on Tuesday it secured $7 million through its Series A fundraiser. The investment round included participation from Finch Finance LLC, Space Capital, and Mubadala Capital-Ventures.
Founded in 2018, Arbol’s products are able to quickly and fairly cover external risks, which includes unexpected weather. The company noted it uses big data, machine learning, and smart contracts to bring transparency and efficiency to the weather risk mark. The insurtech platform facilitated hundreds of deals for institutional clients representing more than $15 million in notional risk over its first eight months of live transactions.
Arbol previously announced that it had secured in excess of $250 million of its own risk capacity to further the expansion of its parametric product offerings. Speaking about the investment, Sid Jha, Arbol’s Founder and CEO:
“This new capital, paired with having dedicated risk capacity, gives us the ability to continue to invest in and significantly grow the footprint of the Arbol platform. We are proud that all of our original investors remain committed to our mission and our growth. We are particularly excited about adding Mubadala Capital-Ventures as a partner in our efforts, and we look forward to working with their team.”
Luke Nicklin, Director, Mubadala Capital-Ventures, added:
“We saw in Arbol an opportunity to leverage geospatial data and next-gen underwriting analytics, to bring efficiency and transparency to the insurance industry, and ultimately help businesses of all sizes manage climate risks. We look forward to the progress this new round of capital will enable, and the long-term impacts the Arbol platform will have.”