In Q2 2024, $1.2 billion was reportedly invested across 106 deals in the insurtech vertical, representing a 27.1% QoQ increase in deal value and a 3.9% QoQ increase in deal count. This, according to an extensive update shared by PitchBook.
The research team at PitchBook also mentioned that Invested capital moved past “the $1 billion mark in Q2 after failing to reach that level for the first time in over six years in Q1.”
The researchers at PitchBook further noted in its comprehensive report that Q1 was also “the first quarter since Q1 2017 that did not see a mega-round closing.”
The research report from PitchBook added that during Q2, one mega-round closed, a $165.0 million Series D “from employee health insurance platform Sidecar Health.”
PitcbBook pointed out in its latest research that other large VC rounds “included real-time risk intelligence platform ICEYE with a $93.0 million late-stage round and insurance portfolio management platform Vitesse also with a $93.0 million Series C.”
PitchBook also mentioned in the report that deal sizes for the seed and early stages “during the first half of 2024 increased, with median values of $2.1 million and $7.0 million, respectively, representing 6.8% and 133.1% increases, respectively, from full-year 2023.”
However, the median late-stage deal size “for Q2 was down to $8.5 million, a 5.9% decrease, compared with full-year 2023.”
Notably, the report added that this “continues 2023’s trend of seed and late-stage startups seeing increased deal sizes, while the early stages saw decreased value.”
However, PitchBook pointed out that valuations increased “across all stages during H1 2024, with the seed stage up 34.0% to $11.9 million, the early stage up 111.9% to $43.4 million, and the late stage up 24.1% to $49.3 million.”
In another separate update from PitchBook, it was noted that the US venture market continues a slow evolution by way of correcting expectations and valuations, “at least in some arenas of the market.”
Artificial intelligence and machine learning (AI & ML) is “driving interest across the strategy, with company valuations far outstripping those in other verticals,” the report from PitchBook noted.
On its own, AI & ML received “nearly 50% of deal value in the US market in Q2.”
