Key US InsurTech investment stats in Q1 2025:
- US InsurTech deal activity dropped by a quarter YoY in Q1
- California retained top spot with a 38% share of all US deals in Q1 2025
- Matic Insurance, a provider of embedded insurance solutions, secured one of the largest US InsurTech deals of the quarter with a $30m growth funding round led by Vistara Growth
US InsurTech deal activity dropped by a quarter YoY in Q1
In Q1 2025, the US InsurTech industry recorded a slight increase in funding despite a notable drop in deal activity.
The sector closed 34 deals, a 24% decrease compared to the 45 deals completed in Q1 2024.
InsurTech companies raised $296m during the quarter, representing a marginal 2% increase from the $290m raised during the same period in 2024.
This contrasting movement between funding and deal volume suggests that while fewer deals are being completed, the average size of funding rounds has increased, pointing to continued investor interest in select opportunities.
California retained top spot with a 38% share of all US deals in Q1 2025
California remained the most active InsurTech state, completing 13 deals (38% share) in Q1 2025, rising from 12 deals (27% share) recorded in Q1 2024.
New York followed closely with 11 deals (32% share), slightly down from 12 deals (27% share) in the previous year.
Texas completed two deals (6% share) in Q1 2025, a decrease from four deals (9% share) in Q1 2024.
Despite the overall fall in deal activity, California and New York strengthened their share of total deal volume, highlighting their growing dominance within the US InsurTech market amidst a broader cooling of the sector.
Matic Insurance, a provider of embedded insurance solutions, secured one of the largest US InsurTech deals of the quarter with a $30m growth funding round led by Vistara Growth
Founded in 2017, Matic enables mortgage servicers, originators, banks, and other financial institutions to offer seamlessly integrated insurance products such as home, auto, and personal lines coverage.
The company connects its partners to over 60 insurance carriers, offering customers access to competitive options through its innovative marketplace.
With partnerships established across more than 100 organisations in the US, Matic is well-positioned within the mortgage market.
The new funding will support the expansion of its operations, enhancement of its advanced technology platform, and deepening of partnerships with financial institutions and insurance carriers, strengthening its position as a leading force in transforming the personal lines insurance sector through embedded distribution.
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