Key European InsurTech investment stats in Q1 2025:
- European InsurTech funding jumped 2.6x QoQ in Q1 2025
- Average deal value rose to $19.7m as investors loosened purse strings
- Napo, a UK-based digital-first pet insurance provider, secured one of the biggest European InsurTech deals of the quarter with a $15.2m Series B funding round
European InsurTech funding jumped 2.6x QoQ in Q1 2025
In Q1 2025, the European InsurTech sector recorded 12 deals, showing a 9% increase from the 11 deals completed in Q4 2024.
However, this remained 40% lower than the 20 deals seen in Q1 2024, highlighting that while deal activity has picked up slightly QoQ, it is still trailing significantly behind YoY figures.
The sector’s recovery in deal flow appears modest, as broader investor caution continues to shape capital deployment strategies across InsurTech.
Funding in Q1 2025 reached $236m, a substantial 2.6x increase compared to the $89m raised in Q4 2024, signalling renewed investor interest in the space.
Nevertheless, this still represented an 18% decline from the $288m raised in Q1 2024, indicating that funding levels have yet to return to early-2024 highs.
Despite the recent rebound, this suggests capital remains selectively allocated amid ongoing macroeconomic and regulatory headwinds.
Average deal value rose to $19.7m as investors loosened purse strings
The average deal size in Q1 2025 was $19.7m, a sharp increase from $8.1m in Q4 2024 and up from $14.4m in Q1 2024.
This upward trend in deal value points to a shift in investor focus toward fewer but higher-value deals, likely favouring more mature or strategically positioned InsurTech firms.
The data reflects a more cautious, value-driven approach from investors as the sector continues to navigate an uncertain funding environment.
Napo, a UK-based digital-first pet insurance provider, secured one of the biggest European InsurTech deals of the quarter with a $15.2m Series B funding round
The funding round was led by Mercia Ventures, alongside participation from existing investors including DN Capital, Companion Fund, and Helvetia Venture Fund.
Specialising in lifetime coverage that includes dental care, behavioural consultations, 24/7 vet access, and multi-pet discounts, Napo is redefining pet insurance by integrating AI-driven claims handling and automation into a seamless digital platform.
Its end-to-end model reduces administrative costs while maintaining high customer satisfaction, as evidenced by a standout NPS and Trustpilot reviews.
The fresh capital will fuel Napo’s geographical expansion, enhance its AI capabilities, and support talent acquisition as it continues to scale a sustainable and customer-focused approach to pet insurance across Europe.
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