Author: Andrew Johnston
We begin the 2023 series of Global InsurTech Reports with a specific focus on InsurTech funding lifecycles. Specifically we break the funding lifecycle down into four unique phases (to be reviewed in each quarterly report): Early stage incubation, early stage acceleration, mid-stage expansion and finally late stage growth and a view on exit. Q1 will look at early stage incubation funding into InsurTech(s).
In keeping with prior reports, we spotlight InsurTech companies that are pertinent to this criteria, interview knowledgeable experts and thought leaders in this space and detail the latest InsurTech investment data.
Key findings for Q1 2023:
- Funding for InsurTech increased 37.6% quarter on quarter, from $1.01 billion in Q4 2022 to $1.39 billion in Q1 2023.
- Mega-round funding contributed to 12.9% of total Q1 2023 InsurTech funding, the lowest contribution rate since Q1 2020.
- Early-stage funding ticked up 3.8% quarter on quarter, despite an 18.3% drop in early-stage deals.
- 37.7% of all InsurTech deals (as individual deal counts, not funding amount) were in the ‘early-stage incubation’ category, consistent with long-term InsurTech data.
- The majority of InsurTech investments from (re)insurers were early-stage for the sixth consecutive quarter.