hyperexponential, the global firm focused on pricing decision intelligence (PDI) software, announced completion of its $73m Series B funding round reportedly “led by global technology-focused investment firm Battery Ventures, with participation from leading Silicon Valley investor a16z, and existing Series A investor Highland Europe, which increased its holding.”
hyperexponential serves insurance and reinsurance companies in “the multi-trillion-dollar global property-casualty insurance industry, which protects individuals and businesses from a wide array of risks.”
As factors such as climate change, geopolitical unrest, and cyberterrorism have increased the frequency and severity of risks, the industry “has pursued next-generation risk pricing methods to augment or supplant traditional pricing models for a changing world.”
hyperexponential’s PDI platform, hx Renew, “enables insurers to leverage large and alternative datasets, develop and refine rating tools rapidly, and employ sophisticated machine learning approaches to price risk and make data-driven pricing decisions at the portfolio and individual level.”
Since the company’s Series A in 2021, hyperexponential has “grown sales 10x while staying profitable, serving some of the world’s largest insurers, including Aviva, HDI, and Conduit Re.”
This latest round of financing will “support hyperexponential’s expansion into the United States, as it targets opening its New York office this year. It will also enable increased investment in new product capabilities to serve growing client demand in adjacent insurance markets, including the SME insurance sector.”
The company plans to double its global team “to over 200 in the next year.”
Sponsoring its Series B investment and “joining hyperexponential’s board as a director is Battery Ventures Partner Marcus Ryu, Co-founder, Chairman, and former CEO of Guidewire Software (NYSE:GWRE), which has grown into one of the world’s largest Insurtech companies since its 2001 founding. Also joining the company’s board is experienced a16z General Partner Angela Strange.”
The hx Renew platform, “named Insurance Insiders’ 2023 ‘Insurtech Product of the Year,’ enables customers like Convex and Conduit Re to sharpen their competitive edge with enhanced agility, efficient risk transfer, and aggregate loss avoidance.”
In 2023, Aviva’s Global Commercial and Specialty team “was able to build 20 models in 9 months, unlock machine learning capabilities and improve the speed and accuracy of their pricing and underwriting decisions, even as the frequency and severity of risks continues to evolve continuously.”
Amrit Santhirasenan, hyperexponential CEO and co-founder, said:
“The insurance industry is at the forefront of a rapidly changing world and must find ways to understand and respond to that change in risk profile. We’ve focused on building a capital-efficient, independent business that was both high-growth and sustainable from the outset. Although we have more cash-on-hand than we’ve raised, we wanted to bring on new expertise in our target markets as we continue our growth into new verticals and geographies. We are delighted to have attracted a world-class set of investors who bring an unparalleled combination of experience, expertise, and support to hyperexponential in the next phase of our expansion.”
Ryu described hyperexponential as one of the most compelling Insurtesh he has seen in 20 years.