Key US InsurTech investment stats in Q2 2024:
- US InsurTech funding dropped by 67% YoY during the second quarter
- The average deal size completed by US InsurTech companies dropped to $11.3m as investors grew more cautious
- Honeycomb secured the biggest InsurTech deal in the US for Q2 2024 with
Series B funding round of $36m
In Q2 2024, the US InsurTech sector saw a decline in both deal activity and funding. Only 21 deals were recorded in Q2 2024, marking a 53% decrease compared to the 45 funding rounds during the same period last year. The funding also dropped with InsurTech companies raising just $237m in Q2 2024, a 67% decline from the $714m raised in Q2 2023. Compared to Q1 2024, which saw 32 deals and $290m in funding, Q2 2024 represents a 34% drop-in deal activity and an 18% decrease in funding.
The average deal value in Q2 2024 was approximately $11.3m, a slight increase from the $10.2m average in Q1 2024, but significantly lower than the $15.9m average in Q2 2023. This trend suggests that while fewer deals are being made, the investments are smaller, possibly reflecting a more cautious investment approach within the US InsurTech market amidst ongoing economic uncertainties.
Honeycomb, a leading digital insurer specializing in property and casualty (P&C) coverage for landlords and condo associations in the U.S., has secured the biggest InsurTech deal in the country for Q2 2024 with a $36m Series B funding round. The round was led by Zeev Ventures, with new investors Arkin Holdings and Launchbay Capital joining existing backers Ibex Investors, Phoenix Insurance, and IT-Farm. Honeycomb leverages cutting-edge technologies, including AI, computer vision, and aerial imagery, to underwrite risks with precision and in real time, driving rapid growth of 200-300% year over year. Headquartered in Chicago with offices across the U.S. and in Tel Aviv, Honeycomb now operates in 16 of the largest states, covering around 60% of the U.S. market and insuring over $21bn in real estate assets. With this new capital, the company plans to double its workforce to 180 employees within the next 18 months, further enhancing its proprietary AI-driven technology that offers bespoke insurance coverage, streamlines the customer and broker experience, and adapts to the evolving needs of its clients.
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