Thomas Cornwall’s Post

US InsurTech funding doubled in Q3 YoY. California-based companies closing quarter of all deals   Key US InsurTech investment stats in Q3 2024:   US InsurTech funding doubled in Q3 YoY California continues to dominate the US InsurTech space after it secured a quarter of all the deals in the region for Q3 Sedgwick, a global leader in claims management, secured the largest US InsurTech deal for the quarter with a funding round of $1bn In Q3 2024, the US InsurTech market experienced a significant increase in funding despite a decline in deal activity compared to the previous quarter. The sector recorded 41 funding rounds, a 38% drop from the 66 deals completed in Q3 2023. InsurTech companies in the US raised a substantial $1.91bn in Q3 2024, more than doubling the $955m raised in the same period last year. However, this funding figure is skewed by a $1bn funding round raised by Sedgwick, a global leader in claims management, loss adjusting, and tech-enabled business solutions. Removing this outlier, third quarter funding would be $908m, resulting in a 5% drop in funding in comparison to Q3 2023. California continued to lead the InsurTech market in the US, with companies in the state completing 10 deals (24.39% share) in Q3 2024, though this was a 47% decrease from the 19 deals recorded in Q3 2023. Despite the reduction in deal count, California’s dominance in the sector persisted. New York and Massachusetts each followed with six deals (14.63% share), marking a decline for New York from 11 deals in Q3 2023, but a rise for Massachusetts, which was not among the top three in Q3 2023. Florida, which held the third spot with eight deals (12.12% share) in Q3 2023, fell out of the top three this quarter. The consistent presence of California and New York highlights the concentrated investment activity in these key states, reflecting investor confidence in these markets even as the industry evolves. As mentioned, Sedgwick secured the largest US InsurTech investment of Q3 2024 with a strategic $1bn equity commitment from Altas Partners. This investment, part of a transaction valuing Sedgwick at approximately $13.2bn, brings in Altas alongside current major investors such as Carlyle and Stone Point Capital, reinforcing Sedgwick’s growth trajectory. Known for its innovative claims-handling platform and expansive service offerings, Sedgwick manages millions of claims across casualty, property, marine, and benefits sectors annually. The partnership with Altas is poised to bolster Sedgwick’s international expansion, technological advancements, and operational resilience, reinforcing its position as a pioneering force in the InsurTech landscape.  

If your startup has raised its first significant VC round, now is the time to take care of some important tasks. Perkins Coie LLP's StartupPercolator provides a checklist of insurance coverage, accounting needs, compliance requirements, and more to ensure your startup is on the right track. #Startups #VCfunding #StartupGrowth #Entrepreneurship #StartupPercolator

If your startup has raised its first significant VC round, now is the time to take care of some important tasks. Perkins Coie LLP's StartupPercolator provides a checklist of insurance coverage, accounting needs, compliance requirements, and more to ensure your startup is on the right track. #Startups #VCfunding #StartupGrowth #Entrepreneurship #StartupPercolator

Running a start-up is no easy feat, and getting insurance is probably dead last on your list of to-dos—especially if you’re trying to make your seed money stretch. But in an industry where things can change overnight, there are hundreds of exposures that could make or break your firm. And if you’re not adequately protected, you could lose everything you’ve worked so hard to build before you even have a chance to make your mark. Here are some key organizational risks every tech start-up should be worried about—and what you can do about it. #techfirms #techstartups #riskmanagement #insurance #commercialinsurance #keyorganizationalrisks #techstartup #insurancebroker #startupinsurance

Startup life is all about taking calculated risks. But some risks shouldn't be left to chance. Protecting your business with the right insurance is a smart investment – not just a "nice to have". This comprehensive guide outlines the essential policies that can safeguard your hard work, and even help attract investors. Check it out and let us know which policy surprised you the most! #nextinsurance #startups #insurance #entrepreneurship #protectyourbusiness https://lnkd.in/giet_8nF

Learn how to safeguard your business and personal finances by identifying risks and securing the right insurance coverage. Whether you're a small business or a venture capital start-up, understanding these crucial points is essential. Consult our blog post for expert insights and make well-informed decisions to protect your leadership and enterprise from catastrophic loss. ➡️ Read today! #NSIInsuranceGroup #StartUp #ExectiveCoverage https://lnkd.in/epzcfHgF

Top 10 InsurTech Capital Raises in the U.S. - August 1st - 11th, 2024 The InsurTech sector has seen significant activity this past week, with several companies securing substantial funding to drive innovation.    If you would like more info on these deals or would like to discuss the capital raising market for your company, please DM me.   Here are the top 10 capital raises:   Merger/Acquisition and Corporate 1. Columbia Insurance & Wealth Management, based in Vancouver, Washington, was acquired by Highstreet Insurance Partners through an LBO. 2. Insurance Management Company, headquartered in Erie, Pennsylvania, was acquired by Hub International through an LBO. 3. Southern Colorado Insurance Center, from Colorado Springs, Colorado, was acquired by Hub International through an LBO. 4. Lincoln Insurance Group, based in McDonough, Georgia, was acquired by King Insurance Partners through an LBO. 5. US Midcorp And Entertainment Insurance, a businesses unit of Allianz Global Corporate & Specialty was acquired by Arch Capital Group for US$ 450 million.   Later Stage VC 6. Nayya, located in New York, New York, raised later-stage VC funding, securing support from ADP Ventures for its innovative insurance solutions.   Early Stage VC 7. Walnut Insurance, based in Toronto, Ontario, raised $3.34 million in early-stage VC funding to enhance its insurance platform. (Lead Investor: NAVentures) 8. AutoComplete, from San Francisco, California, received backing from AutoNation and Bain Capital Ventures in its early-stage VC funding round.   Seed Round, Angel, and Grant 9. Chaiz, headquartered in Austin, Texas, raised $3.96 million in seed funding to develop its insurance tech platform. (Lead Investor: Resilience VC) 10. Fair, based in Dover, Delaware, secured $1.44 million in seed funding to innovate in automotive insurance. (Investors: Antler, Blue Collective, Redbud VC)   #castleplacement 📈 #capitalraising 💼 #privateequity #venturecapital #investment #InsurTech

Weekly Appreciation - Peter Goldstein Let’s celebrate the good in each other, one person at a time…. In 1999, I took a leap of faith and joined a fledgling startup. Coming from a $100 billion insurance company, the transition to startup life was both exhilarating and challenging. It ended up being the best and worst five years of my life. But this story isn’t about the success we achieved—it's about how it ended. We eventually sold the company to new private equity owners who had a different vision for the future. That vision included moving me from my operational leadership role to a niche position in claims—a demotion in my eyes. To make matters worse, they wanted me to relocate from Florida to Minnesota. And although I loved Minnesota, the people, the culture, the weather not so much. It was not very enticing especially since I had just earned the largest payday of my life through an equity award, meaning my future was no longer tied to a "job." After some back-and-forth, the acting CEO made the decision to terminate my employment, framing it as a positive step to push me toward greater things. I felt jilted —but in the end, he was right. The lesson I took from it was valuable, but that's not the focus of this story. The focus here is Peter Goldstein. Peter was one of the original founders and served as the executive head of sales and marketing. Although I reported to the COO, I got to know Peter well because we were a small company where everyone interacted closely. Peter was one of those people everyone liked—charismatic, like a town’s favorite mayor. After the CEO informed me about my exit, Peter called me to personally thank me for my contributions. He offered some general career advice and, before hanging up, left me with, "If you ever need anything, just give me a call." I appreciated the gesture, but I wasn’t sure if it was sincere or just a professional courtesy. Over the next two years, I explored new ventures, focusing on real estate investment. By 2006, I sensed a shift in the market and, though I didn’t anticipate the full crash that followed, I knew it was time to pivot. I decided to return to the insurance industry and was quickly recruited by a major corporation—largely because of my experience at the LTC startup. I knew this was a huge opportunity, and I wanted a strong reference to back me up. Peter’s offer echoed in my mind. True to his word, when I reached out, he gladly took my call, gave me advice, and became a key reference for the role. His support was instrumental, and that new role turned out to be a life-changing experience. Peter’s kindness and follow-through helped me open the next chapter of my career, and his example has since become a model for how I aim to conduct myself as both a professional and a leader. For that, I will always be grateful.

Feeling neglected by your insurance broker? 🤔 When was the last time they asked… - Where is your business heading? - Have you secured any recent investments? - Is your existing cover still fit for purpose? If you can’t remember, it might be time to make the switch! Discover how easy switching can be. See more info below 👇 #startups #scaleups #underinsurance #nextlevelthinking #highgrowth

Are you considering investing in the Insurance Sector?    In our latest article, “Unlocking Hidden Opportunities in Insurance Sector Investments,” we look at the evolution of private equity's interest in insurance-related investing, the sector's myriad complexities, and the factors that make it a target-rich environment for entrepreneurs and strategic investors. Read more here: https://lnkd.in/dS9UJg8S #ExtraordinaryExit #InsuranceSector #Investment #Opportunities #SellingtoStrategics #Entrepreneurs