American Fintech SaaS company Irys Insurtech Inc has announced raising $3.5 million in a Seed funding round anchored by Markd, a venture capital investor focused on Insurtech innovations.
The funding round, which also saw participation from insurtech firms such as Brokertech Ventures, Revtech Labs, Cofounders Capital, and Mtech Capital, formally propels Irys Insurtech’s entry into the insurtech market, which the startup claims to be largely controlled by outdated legacy agency management systems.
Established in 2021, Irys operates an open API software platform that seeks to eliminate the obstacles created by large legacy competitors. The platform leverages machine learning (ML) and generative artificial intelligence (AI) to support insurance brokers.
The company’s vision is to break free from outdated, restrictive insurance practices, said Irys CEO Margeaux Giles. “We’re not just shaking the tree; we’re uprooting it,” Giles added.
The fresh funding is significant for Irys, which aims to revolutionise the insurtech space. The Seed funds will be used to scale the startup’s platform and boost its implementation team.
The startup’s funding comes as the global insurtech market size is expected to reach $10.14 billion by 2025 from just $5.48 billion in 2019, growing at a compounded annual growth rate of 10.80%, according to a Mordor Intelligence report.
Despite its late popularity, insurtech seems to have reached a pivotal turning point, with several industry experts considering the digital transformation of insurance as the subsequent major prospect after fintech.
“In my distribution experience, there was never a bigger drag on growth, profitability, innovation, and customer happiness than an agency management system. I have no issue with legacy claims of those to be the original insurtechs. They certainly act like it,” said Parker Beauchamp, founder and managing partner of lead investor Markd.
Last year, Markd raised a $100 million for its debut fund for early- and growth-stage startups focused on the insurance industry.
Aside from Irys, Markd’s portfolio includes insurance platform LuckyTruck, digital insurer Babel Cover, insurance firm Glow, specialty insurance company Ledgebrook, and insurtech startup Loro Insurtech Inc.
