hyperexponential, a global leader in pricing decision intelligence (PDI) software, has concluded a $73m Series B funding round which was funded by a host of major US Venture Capitalists (VCs).
The impressive tranche was spearheaded by Battery Ventures, a prominent global technology-focused investment firm, and also featured renowned Silicon Valley investor a16z and existing Series A supporter Highland Europe, which increased its investment in the firm.
The funds are set to fuel the expansion of the company’s mission-critical insurance pricing platform, and support its strategic expansion into the United States, as it looks to open a New York office later this year.
On top of this, the firm is planning to double its global team to over 200 employees by the end of 2024.
In personnel news, Battery Ventures Partner Marcus Ryu, co-founder, Chairman, and former CEO of Guidewire Software will join hyperexponential’s board as a direct after sponsoring the Series B investment. a16z General Partner Angela Strange is also set to be on the board.
hyperexponential serves as a vital player in the insurance and reinsurance sector, catering to the ever-growing demands of the multi-trillion-dollar global property-casualty insurance industry.
As a response to escalating risks posed by climate change, geopolitical unrest, and cyberterrorism, the organisation’s PDI platform, hx Renew, has become the platform of choice for major insurers worldwide.
Amrit Santhirasenan, hyperexponential CEO and co-founder, said, “The insurance industry is at the forefront of a rapidly changing world and must find ways to understand and respond to that change in risk profile. We’ve focused on building a capital-efficient, independent business that was both high-growth and sustainable from the outset. Although we have more cash-on-hand than we’ve raised, we wanted to bring on new expertise in our target markets as we continue our growth into new verticals and geographies. We are delighted to have attracted a world-class set of investors who bring an unparalleled combination of experience, expertise, and support to hyperexponential in the next phase of our expansion.”
Battery Ventures Partner, Marcus Ryu, said, “I believe hyperexponential is among the most compelling new entrants in InsurTech I have seen in over twenty years of serving the P&C insurance industry. As former software engineers and actuaries with top tier commercial insurers, Amrit and Michael each bring a deep practitioner’s grasp of the new requirements for risk pricing. hyperexponential is rapidly becoming an indispensable tool for the insurance industry to thrive in a future that is not reliably the same as the past.”
Angela Strange, General Partner at a16z said, “Pricing risk is the most critical function of an insurance carrier. Yet, most actuaries still work with cumbersome Excel models and are constrained by legacy software that limits their ability to dynamically incorporate new data and more sophisticated analytical techniques. Amrit and Michael’s actuarial experience helped them design the system the insurance market needed, and hyperexponential has achieved incredible traction with technical users and executives alike as they’ve completed multiple industry-leading deliveries around the world. hx Renew is rapidly becoming the operating system for pricing risk in the global insurance market. We are thrilled to join forces with the hyperexponential team as they launch in the US and expand beyond specialty lines”.
Highland Europe partners Laurence Garrett and David Blyghton commented, “The hx team have been superb to work alongside since we first invested in April 2021. The business has repeatedly beaten its forecasts and we are delighted to support the Company with additional capital. Working alongside entrepreneurs like Amrit and Michael is what makes the VC role awesome.”
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