What’s funding like in the InsurTech market right now?

All funding deals in the InsurTech Market over the last 24 months

Below is the table listing all the deals. You can find our methodology at the end of this page.

If you want a deeper understanding of the market and its current dynamics, get our report covering the InsurTech Market.

Is InsurTech funding actually healthier now?

InsurTech funding is healthier today for companies that have already proved themselves, but the market has become harder to enter.

We found $3.48 billion of funding in the latest 12 months, up 59% from $2.19 billion. The median financing also jumped from $8 million to $17.25 million, so companies that managed to raise generally raised much more.

At the same time, only 94 companies were funded, down from 123, and the number of deals fell from 125 to 100. First financings dropped from 33 to 21. The market is giving considerably more money to a smaller group of companies.

That makes the current InsurTech market more mature and better funded at the top, while startup formation has clearly weakened.

Metric	Current L12M	Previous 12M	Change
Total capital	$3.478B	$2.187B	+59.0%
Deals	100	125	-20.0%
Unique companies	94	123	-23.6%
Median round	$17.25M	$8.0M	+115.6%
Average round	$34.78M	$17.50M	+98.8%
First financings	21	33	-36.4%
Follow-on share	79.0%	72.8%	+6.2 pp

Is the 59% jump in InsurTech funding mostly a few giant rounds?

Most of the extra InsurTech funding came from large rounds, although the underlying market also improved a little.

Once we remove transactions above $50 million, funding growth falls from 59% to only 2.5%. If we remove rounds above $100 million, capital is still up 9.4%. That is a very different picture from the headline.

The upper end expanded dramatically. Alan raised roughly $550 million, Axonic Insurance raised $210 million, Curative disclosed more than $150 million, while Corgi, Federato and Nirvana Insurance all reached nine figures.

Alan is especially important. According to its latest shareholder update, the company had reached roughly €840 million of signed ARR and 1.14 million members around its €480 million financing. This was growth capital going into an insurer that was already operating at significant scale.

Still, we cannot dismiss the whole increase as a mega-round illusion. The typical financing became much larger too. What changed most was the slope of the market: ordinary successful rounds moved upward, and the biggest rounds moved upward much faster.

Is InsurTech funding getting too concentrated?

InsurTech capital is much more concentrated now, with almost half of all funding going into the ten largest rounds.

Rounds above $50 million supplied 59.3% of current capital, compared with 36.9% a year earlier. Deals above $100 million alone accounted for 40.7%, versus 13.9% previously.

The largest transaction represented 15.8% of all capital, almost twice the previous 8.2%. The top three reached 26.5%, and the top ten reached 49.4%.

This concentration makes the market look spectacular from the top down. For founders outside that upper tier, the improvement is much less dramatic. The sub-$50 million market is roughly where it was a year earlier in aggregate dollars.

Concentration measure	Current	Previous
Largest deal share	15.8%	8.2%
Top 3 capital share	26.5%	17.9%
Top 5 capital share	34.4%	25.0%
Top 10 capital share	49.4%	39.2%
Deals above $50M	15	9
Capital from >$50M rounds	59.3%	36.9%
Capital from >$100M rounds	40.7%	13.9%

Are fewer InsurTech companies getting funded now?

Yes, InsurTech funding is reaching substantially fewer companies today.

The number of funded companies fell by almost a quarter, from 123 to 94. Deal activity declined slightly less because repeat fundraising became more common: five companies raised multiple times during the latest period, compared with two previously.

That difference tells us something useful about where investors are putting their effort. Capital is circulating more frequently among companies that are already inside the funded ecosystem instead of continuously expanding the pool of funded startups.

The contraction does not come from whole markets disappearing. We still found activity across six regions, 21 countries and all seven major InsurTech categories. The narrowing happened mainly company by company.

Are investors still backing brand-new InsurTech startups?

Investors are still backing new InsurTech startups, but far fewer of them are getting through the door.

First financings fell from 33 to 21. Yet the median first financing increased from $3 million to $5.5 million, and total capital going into those first rounds roughly doubled.

Some recent examples show how substantial an initial round can now be. Advocate Technologies came out of stealth with $18 million after spending years building commercial-insurance pricing and coverage benchmarks. Its platform was already drawing on $7.3 billion of premium data across 70,000 policies when it launched publicly.

Other young companies also arrived with unusually large checks. Stack Health raised $21 million at launch around an ICHRA-focused health-insurance brokerage, while Corridor launched with $25 million for its employee-benefits brokerage model.

So the early-stage market has become more selective, but the startups that do get funded can start with serious capitalization. These days, fewer companies are entering, while the successful entrants often arrive with more money behind them.

Are existing InsurTech winners taking most of the money?

Existing InsurTech companies now dominate both the number of financings and the dollars invested.

Follow-on rounds represented 79% of current deals and absorbed roughly 91% of all capital. Their median size increased from $13 million to $21 million.

Corgi shows how far that dynamic can go. The company announced a $160 million Series B and then raised another $106 million Series B1 only three weeks later. Its second financing valued the company at $2.6 billion and was explicitly tied to expanding its full-stack commercial-insurance platform into new lines.

Federato raised $100 million after tripling revenue over the previous year. Nirvana Insurance secured a preemptive $100 million Series D only months after its Series C. Roojai raised $60 million at Series C to keep scaling its direct digital-insurance model.

Investors are currently much more comfortable writing large checks into companies that can already show they work.

Has the typical InsurTech round moved into a completely different range?

InsurTech rounds have moved sharply upward, and the shift reaches much further than the handful of mega-rounds.

A year ago, 39.2% of deals were below $5 million. That share has fallen to 26%. Meanwhile, $100 million-plus transactions increased from 1.6% to 10% of all deals.

The middle moved as well. Deals between $20 million and $50 million became more common, while the entire sub-$20 million segment shrank from 70.4% of transactions to 52%.

This is one of the clearest changes in the market. A year ago, seven out of ten rounds were below $20 million. Today, that is barely more than half.

Round size	Current deal share	Previous deal share	Current capital share	Previous capital share
<$5M	26.0%	39.2%	2.1%	5.1%
$5M–<$20M	26.0%	31.2%	7.6%	18.4%
$20M–<$50M	28.0%	21.6%	23.7%	37.3%
$50M–<$100M	10.0%	6.4%	17.2%	25.4%
$100M+	10.0%	1.6%	49.4%	13.9%
<$20M combined	52.0%	70.4%	9.7%	23.5%
$20M+ combined	48.0%	29.6%	90.3%	76.5%

Why is Series B suddenly so important in InsurTech?

Series B has become the key scaling round in InsurTech, rising from 11.2% to 21% of all financings.

Its share of capital almost doubled as well, from 15.3% to 29.3%. Early-stage investing did not disappear: Seed and Series A still represented half of all deals. The real change happened immediately above them, where many more companies managed to turn early traction into much larger financings.

Corgi is the extreme case, but the pattern is wider. Stand Insurance Solutions raised $35 million at Series B. Parametrix raised $27 million after reporting a threefold increase in top-line growth during the year. Liberate raised $50 million to expand its insurance AI deployments. Outmarket raised $34.5 million just four months after announcing its Series A.

That last case is particularly useful. Outmarket said more than 300 agencies and 10,000 users were already using the platform, including more than a quarter of the top 100 U.S. brokers. The company itself said it had not expected to raise again so quickly, but customer adoption changed the timetable.

Series B money is following companies that can show customers are already using the product.

Which parts of InsurTech are actually gaining momentum?

Digital Brokers & Marketplaces gained the most breadth, while Digital Insurers captured by far the most capital.

Digital Brokers & Marketplaces increased from 12.8% to 23% of transactions. Their capital share actually fell, which makes the rise in deal count more interesting: this was a broad expansion involving more companies rather than one huge round distorting the category.

Digital Insurers went the other way. Their deal share slipped slightly, yet their capital share jumped to 62%. Alan, Axonic Insurance, Curative, Nirvana Insurance and Roojai all helped push much more money into established or scaling insurers.

Underwriting & Pricing Software also changed dramatically. Its median round increased from just $2 million to $24 million even though the category did not gain deal share. Claims Technology had a weaker year underneath its larger rounds: fewer deals proportionally and a slightly lower median financing.

Category	Current deal share	Change	Current capital share	Change	Current median
Digital Insurers	35.0%	-2.6 pp	62.0%	+13.4 pp	$27.0M
Digital Brokers & Marketplaces	23.0%	+10.2 pp	14.1%	-3.8 pp	$12.5M
Insurance Distribution Software	15.0%	-3.4 pp	4.5%	-3.7 pp	$7.2M
Policy Administration	10.0%	+0.4 pp	6.2%	-2.8 pp	$17.1M
Underwriting & Pricing Software	8.0%	-1.6 pp	7.5%	+4.4 pp	$24.0M
Claims Technology	7.0%	-4.2 pp	4.4%	-0.6 pp	$3.1M
Reinsurance & Risk Platforms	2.0%	+1.2 pp	1.4%	-6.8 pp	$24.0M

Is AI really changing what gets funded in InsurTech?

AI is increasingly shaping where large InsurTech software rounds go, especially when the technology is already replacing expensive manual insurance work.

Federato is the clearest example. Its $100 million Series D came after revenue had tripled in a year, and Goldman Sachs described the company's AI-native platform as producing a meaningful jump in ROI and efficiency versus older insurance systems.

FurtherAI offers another useful example. The company raised $25 million after saying its software was already processing billions of dollars of premium annually. It reported customers using AI across submissions, policy comparisons, claims intake and compliance, with some workflows moving from hours to minutes.

Liberate raised $50 million to expand AI agents across sales, servicing and claims. Axle's $17.5 million Series A came while its software was clearing more than $100 billion of insurance coverage annually for over 4,000 businesses.

The funding is following production usage. Insurers have experimented with AI for years, but investors are now putting larger amounts behind companies that can connect the software directly to underwriting, policy, distribution or claims workflows and show that customers are using it at scale.

Are InsurTech investors getting more selective?

InsurTech investors are getting more selective, and repeat conviction has become much more visible.

The number of unique disclosed lead investors fell from 124 to 94, while the share of lead-investor participations coming from names that appeared more than once rose from 6.3% to 18.3%.

Sequoia appeared three times. Madrona, General Catalyst, Kaszek, Valor Equity Partners, TCV, Brewer Lane Ventures, Thrive Capital and CommerzVentures each appeared more than once.

We should not interpret every investor that disappeared from the latest period as having abandoned InsurTech. A 12-month window is too short for that. But the overall pattern is hard to miss: fewer companies are raising, fewer unique investors are leading, and repeat investors account for much more of the activity.

These days, InsurTech funding looks increasingly conviction-driven.

Are big insurance companies taking a bigger role in startup funding?

Strategic investors remain important in InsurTech, but their overall presence has barely changed.

Strategic investors participated in 27% of current deals, compared with 26.4% previously. Their median round did increase from $12 million to $16 million, so the checks around strategic participation became larger.

The names involved also tell us where incumbents see value. New York Life Ventures and Northwestern Mutual Future Ventures joined Modern Life's $20 million Series A. Kaiser Permanente Ventures participated in SureCo's $23 million Series A. HDI backed Roojai and participated around Parametrix. Tokio Marine and MS&AD Ventures invested alongside Anzen.

That activity gives young companies useful insurance-industry validation and relationships, but corporate investors did not suddenly flood the market. The big funding increase came from larger rounds overall, not from a major change in the strategic participation rate.

Are successful InsurTech startups raising again faster?

Some of the strongest InsurTech startups are raising again extremely quickly, although we cannot yet say the whole market has sped up.

Outmarket's Series B arrived only four months after its Series A. Corgi returned three weeks after a $160 million Series B for another $106 million. Federato's $100 million Series D followed its $40 million Series C by less than a year.

The age data points in the same direction. The typical Series B company in the latest period was roughly 2.9 years old, compared with 3.9 years previously. Series C companies fell from around 7.5 years to 5.6, while Series D+ moved from roughly 7.9 years to 5.8.

We still lack structured previous-round dates for the full market, so a market-wide fundraising interval would be false precision. What we can say confidently is that several companies with strong adoption have been allowed to move through the funding curve very fast.

Do InsurTech startups need more proof before investors write big checks?

Large InsurTech rounds increasingly follow clear operating proof, while investors still seem willing to fund very young companies when the initial case is unusually strong.

Alan had more than one million members and hundreds of millions of euros of recurring revenue around its latest financing. Federato had tripled revenue. Outmarket had hundreds of agency customers and thousands of users. Axle said it was clearing more than $100 billion of coverage annually. Advocate came out of stealth with pricing benchmarks built from billions of dollars of premium data.

Those examples make the current funding bar easier to understand. Investors are paying up for adoption, revenue, workflow volume, proprietary data or some other evidence that the product is already embedded in the insurance market.

At the same time, first-financing recipients were actually younger than a year earlier. Their median age fell from roughly 1.4 years to 0.7 years.

Age itself is therefore a poor explanation. Investors will fund a very young InsurTech company today, but when they write a large check they increasingly want something concrete behind the story.

Is Europe catching up with North America in InsurTech funding?

Europe looks stronger in InsurTech funding dollars than it does in the underlying deal market, largely because of Alan.

Europe's share of deals fell from 29.6% to 21%, yet its share of capital increased from 22.4% to 28%. France alone generated 19.2% of all current funding despite having only three transactions.

North America gives us a broader improvement. Its deal share rose from 56.8% to 65%, while the median round climbed from $8.5 million to $20 million. That happened across many different companies rather than through one financing of Alan's size.

Asia-Pacific remained at 8% of deals, with large transactions including Roojai's $60 million Series C. Middle Eastern activity increased from a small base, while Latin America lost some share.

Geographic diversity itself held up surprisingly well. We still counted 21 countries across six regions, even with substantially fewer funded companies overall.

Are InsurTech startups still raising to build products, or are they raising to scale?

The biggest InsurTech rounds now look much more like scale financings than experiments.

Alan says its new capital is going into international expansion, product development, AI and growth across both established and new markets. Corgi is expanding into additional commercial-insurance lines. Federato plans further product development and international growth. Modern Life said its Series A would expand partnerships and accelerate development of its AI platform.

Parametrix raised after a year in which it reported tripling top-line growth, with new money aimed at scaling insurance for digital downtime and data-center risks. Luzern Risk's recent $45 million Series B is funding expansion of its captive-insurance platform and AI capabilities. SureCo is using its Series A to scale technology, carrier integrations and service capacity around growing ICHRA demand.

We cannot calculate a clean year-over-year use-of-funds distribution because companies do not disclose this consistently. Still, the larger rounds we can examine are frequently about selling more, expanding geographically, extending product lines, integrating deeper into customers and supporting already-growing operations.

The market today looks further along the commercialization curve.

So is InsurTech booming again?

InsurTech is not back to a broad venture boom. It has become a much stronger funding market for a narrower group of companies.

As seen above, the low end of the deal-size distribution has shrunk while $20 million, $50 million and nine-figure rounds have become much more common. A smaller number of startups receive funding, but the winners can now attract very substantial capital.

The latest company announcements reinforce that picture. Outmarket is raising quickly because agencies are adopting the product. Federato raised after tripling revenue. Advocate launched with billions of dollars of premium data behind its benchmarks. Axle already processes enormous coverage volume. Alan is financing international expansion from a base of more than one million members.

Those are very different businesses, but investors are rewarding the same thing: evidence that a company has moved beyond the experiment.

The best description of InsurTech right now is a selective scaling market. That is healthier than a market where nobody can raise meaningful growth capital, but weaker than a market where new companies are being created and financed at a broad pace.

What really changed over the last 12 months?

The biggest change is that InsurTech funding moved toward a smaller group of stronger companies. Total capital rose sharply, but the number of funded companies fell by almost a quarter. The market became deeper without becoming broader.

Large rounds explain most of the dollar growth. Once financings above $50 million are removed, year-over-year capital is almost flat. The spectacular top-line increase therefore says much more about the upper end of InsurTech than about the average startup trying to raise.

The typical successful round still improved substantially. As pointed out above, the median financing more than doubled, and the share of sub-$20 million deals fell sharply. That tells us the change runs deeper than a few exceptional transactions.

Existing companies benefited most. Follow-on capital dominates the market, Series B has become a much bigger part of the funding mix, and several companies have been able to return for new capital unusually quickly after showing strong adoption.

The categories gaining momentum are doing so in different ways. Digital Brokers & Marketplaces gained breadth through more transactions, Digital Insurers attracted huge amounts of scale capital, and AI-native underwriting and insurance software started producing much larger financings once products reached real production workloads.

Investors also became more selective. Fewer unique lead investors were active, repeat leads became much more common, and recent large rounds frequently came with concrete evidence of revenue, usage, premium volume, proprietary data or customer adoption.

The misleading headline would be that InsurTech funding rose 59% and the whole market is booming again. Today, the more useful conclusion is that InsurTech has become a more mature, more concentrated and much better funded market for companies that can prove they deserve to scale.