North American and European insurtechs recalibrate after a 2021 blockbuster – Marketingwithanoy

How much difference? makes a year.

In April 2021, Marketingwithanoy published a vision of venture capitalists that “the era of the European insurtech IPO will soon dawn”. At the time, the perspective made some sense.

After all, last June, this column examined rapid fundraising in the insurance technology startup market, stating that “insurtech is hot on both sides of the Atlantic.” At the time, WeFox had recently raised a $650 million round, which put big points on the board for European insurtech.

Since then, we’ve seen the technology market correct and public market investors spit out insurtech’s late 2020 and early 2021 IPOs, essentially reducing the value of neo-insurance companies to nearly zero when we subtract cash from their market caps.


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The change in sentiment prompted The Exchange in February to ask which insurtech startups could thrive this year and which could suffer. Since then, technology stocks, including insurtech’s most recent IPOs, have continued to correct, causing the Nasdaq and NYSE to plummet.

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Now, about a year ago, when it seemed that a period of hyperactivity would send a large number of European insurtechs to the public markets, we examine how different the market is. Featuring venture capital data collected for Marketingwithanoy by PitchBook and notes from active insurtech venture capitalist Florian Graillot from Astorya.vc we now know much more.

While the 2022 data tells a grim story, the remainder of the second quarter this year could be pivotal for insurtech. Let’s examine the insurtech business in both North America and Europe, compare recent results and see what lies ahead.

How insurtech investing has changed this year

The optimism surrounding insurtech’s results last year fits well with the data that we can now see in retrospect.

In North America, PitchBook reports that insurtech’s venture capital activity rose to $2.21 billion in 83 rounds in the second quarter, from $1.67 billion in 78 rounds in the first quarter of 2021. It peaked in the third quarter of 2021. with $2.51 billion invested in 66 deals, before falling to $1.80 billion in the fourth quarter of 2021 and to $1.52 billion in the first quarter of 2022.

The number of deals also fell to just 54 in the first quarter of 2022, from 67 in the fourth quarter of 2021.

Insurtech’s story in Europe was a little different. Investments have remained broadly flat from the first quarter of 2021 through the first quarter of 2022, according to PitchBook, with one exception: the second quarter of last year.

Excluding the second quarter of 2021, European investment in insurtech drove between $450 million and $550 million from the beginning of last year through the first quarter of 2022. However, in the second quarter of 2021, approximately $1.76 billion in 57 rounds, marking both a deal and a highlight of the recent past. (More on why Q2 2021 is key to understanding the future of insurtech in Europe soon.)

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