The share of InsurTech deal activity for transactions under $1m dropped by more than two thirds in the US since 2015

InsurTech companies in the US raised over $7.8bn across 418 transactions between 2015 and 2019. The InsurTech landscape has matured, with average deal size increasing from $13.7m to $38.2m over the period. The US is a global leader in InsurTech with its robust insurance industry and strong tech talent pool, the country has one of the most mature InsurTech subsectors globally. Additionally, the passing of Obamacare also opened the door for innovation in the health care industry, giving rise to some of the first InsurTech unicorns worldwide – Oscar and Clover Health.

The US InsurTech landscape has witnessed a shift from investors predominantly backing earlier stage deals (e.g. under $1m) towards larger sized deals, which shows the maturing of the subsector in the country since 2015. Deal activity for transactions valued higher than $10m increased by 16.7 percentage points (pp), while for deals valued under $1m the share of deal activity dropped by 19.9pp over the past five years.

The largest funding round in the US was raised by Bright Health, a health insurance company in Minneapolis. The company raised $635m in a series D round led by New Enterprise Associates (NEA) in December 2019. Bright Health will use the funding to expand their health plan products to new markets in 2020.

The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2020 FinTech Global

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