Insurtech Gateway, an independent insurtech incubator authorised by the FCA, has announced the first close of Seed Fund II.
According to the announcement, this funding will allow the Gateway to support another 20 teams over the next 4 years from pre-seed to Series A.
Insurtech Gateway was founded in 2016 with a mission in mind, to close the funding gap in early stage insurtech, and to attract a new kind of founder tackling complex climate and social challenges.
The Gateway incubates early stage founders to de-risk their regulatory and insurance metrics.
Statistics by global data platform, Dealroom, show insurtech startups are severely underfunded compared to other verticals targeting similar market size like fintech, health and mobility.
From 2016 to 2022; health received $361bn in global VC funding, fintech (excluding insurtech) got $323bn and transportation got $297bn.
Comparing this to the $43bn received by insurtech throws this gap into sharp relief.
Javier Santiso, CEO & General Partner, Mundi Ventures said: “The funding environment has cooled off from the 2021 euphoria, but the industry still offers huge opportunities and is waiting for much disruption.
“We have seen a strong correction in public market valuations and some degree of pullback also in the private market. But in the long term, insurance is still a huge market with very low investment compared to fintech and health.
“It is great to see Insurtech Gateway launching a new fund to help close the insurtech funding gap.”
In order to attract the “nest generation of founder”, the Gateway has created a collaborative environment where insurance principles in risk reduction, mitigation and transfer can be combined with new technology and system design to create complete solutions to new and growing protection gaps in business, climate and health.
Richard Chattock, CEO at Insurtech Gateway said: “We believe that insurance and technology can transform society. We are proud to have created a place where independent founders can build sustainable partnerships with progressive insurers, regulators and co-investors.”