Global insurtech funding falls to its lowest quarterly level since 2018, according to a report from CBInsights.
Despite growth in broader venture funding in Q1’24, insurtech (insurance technology) funding declined 18% quarter-over-quarter (QoQ) to hit its lowest level in years ($0.9B), the CBInsights report reveals.
Even so, median insurtech deal size “is up in 2024 so far — signaling that investors are still willing to make notable bets where they see opportunities,” the CBInsights report notes.
The research report also mentions that at $0.9B, Quarterly insurtech funding is at its lowest level since 2018.
Specifically, the report points out that Insurtech funding fell 18% QoQ to hit $0.9B in Q1’24.
The funding decline was particularly “pronounced in P&C insurtech, which saw funding drop by 25% QoQ.”
Meanwhile, broader insurtech deal count “ticked up slightly, rising from 104 in Q4’23 to 107 in Q1’24.”
In addition to these figures, the CBInsights insurance technology repot noted that there was a 17% QoQ increase in European markets overall deal count. This is said to be the first such jump since Q2’22.
The CBInsights report added that Europe-based insurtech startups raised 28 deals in Q1’24, “up from 24 in Q4’23.” Funding also more than “tripled QoQ, rising to $284M in Q1’24.”
The region saw the 2 largest insurtech deals in Q1’24:
Hyperexponential’s Series B round and embedded insurer ELEMENT’s $54M Series C round.
As far as $100M+ megaround deals, CBInsights’ report claims that it is the first time since 2018 that Insurtech startups did not raise a single $100M+ round in Q1’24.
Relatedly, late-stage deal share — which often comprises larger, mega-round deals — is down to 7% in 2024 so far.
Hyperexponential, a pricing platform, raised the largest insurtech deal in Q1’24 — a $73M Series B round.
While sharing other key insihts, $5M is reportedly the Median deal size in 2024 so far, the report note while adding that this figure is “up 19% from 2023. And Median insurtech deal size is $5M in 2024 so far, up 19% vs. $4.2M in full-year 2023.”
This elevated median deal size is said to be “partially linked to an uptick in median early-stage deal size, which sits at $3.2M in 2024 so far.”
Meanwhile, the average insurtech deal size “in 2024 YTD ($9.8M) is down 17% from full-year 2023.”
M&A exits were the fewest since 2018.
Exit activity has nearly halted in insurtech, “with M&A exits declining from 13 in Q4’23 to just 5 in Q1’24. Comparatively, fintech M&A exits largely remained flat QoQ — ticking down from 153 in Q4’23 to 152 in Q1’24.”
