The Global Insurance Accelerator (GIA), an insurtech-focused business accelerator, has announced changes to its funding structure beginning with the 2020 cohort of start-ups.
Notably, the GIA has nearly doubled the seed funding investment granted to successful applicants, boosting it from $40,000 to $75,000 via a post-money Simple Agreement for Future Equity (SAFE), which converts to 5% of a company.
Housing for participants will now be covered un entirety by the seed investment, while other program benefits will continue to include meetings with mentors, office space, educational sessions, exposure at industry conference, and the opportunity to present at the Global Insurance Symposium.
“The GIA was established at the very forefront of the InsurTech movement,” said Nicole Gunderson, managing director for the GIA.
“The funding and perks provided for startups at that time was more than equivalent to other accelerators in the industry, but like any startup, we’ve learned a lot in our first five years and need to continue to evolve and scale,” she explained.
“Today, there is increased competition in the accelerator landscape, and our goal with this change is to provide a founder- and investor-friendly, standard market structure.”
The decision to increase program benefits for future cohorts was voted on and approved by the 13 insurer investor members of the GIA board.
This included representatives from Allstate, American Equity Investment Life Insurance Company, Delta Dental of Iowa, EMC Insurance, Farm Bureau Financial Services, Farmers Mutual Hail, Grinnell Mutual Reinsurance Company, Global Atlantic Financial Group, IMT Insurance Company, Markel Corporation, Mutual of Omaha, Principal Financial, and SFM.