IT downtime insurance provider Parametrix Insurance has raised $17.5 million in a funding round that saw participation from FirstMark Capital and F2 Ventures.
Parametrix’s insurance product provides coverage for companies that could suffer financial or operational disruption due to outages to third-party cloud-based services.
Using parametric triggers, the firm’s policies pay-out in full within 15 days when downtime conditions are met, without requiring customers to go through claims adjustment processes or restricting them in terms of how they use the funds.
To this end, Parametrix has developed a monitoring system on a multi-cloud environment that continuously tracks the availability and performance of third-party IT services across the globe.
“The business world’s dependence on cloud solutions is rapidly accelerating. To help them hedge this external risk, we created a new category in the insurance market by introducing reliable protection from the cloud downtime incidents that inevitably occur,” said Yonatan Hatzor, CEO at Parametrix Insurance.
“I am very proud that FirstMark has joined our journey and excited to move together into our rapid growth phase during which we will expand our operations around the world.”
Amish Jani, Founder and Partner at FirstMark, also commented: “Parametrix has built an incredible platform to monitor third-party cloud platforms at an extremely granular level. Having seen first hand the impact of downtime within our portfolio, we believe cloud downtime insurance will become a core part of every company’s business continuity plan.”
“Parametrix has created a first-of-its-kind insurance product for a huge and growing market,” added Jonathan Saacks, Managing Partner at F2 Venture Capital. “The acceleration of digitization and online services means Parametrix is well-positioned to be the leading company of this market.”