Key US InsurTech investment stats in Q1 2025:
- US InsurTech funding rose by 37% YoY
- Average deal value increased to $12.8m as investors showed a willingness to back a mix of mid-sized opportunities
- High Definition Vehicle Insurance (HDVI), a technology-first commercial auto InsurTech, secured the largest US InsurTech deal of the quarter with a $40m growth capital raise
US InsurTech funding rose by 37% YoY
In Q1 2025, the US InsurTech sector recorded 31 deals, reflecting a marginal 3% decline from the 32 deals completed in Q1 2024.
However, compared to Q4 2024, deal activity saw a notable 48% increase from the 21 deals closed in that quarter.
This rebound in deal volume suggests a potential revival in investor engagement following a subdued end to 2024.
Total funding in Q1 2025 reached $396m, representing a 37% increase from the $290m raised in Q1 2024 and a 24% rise compared to the $320m secured in Q4 2024.
This upward trend in capital inflows signals growing confidence among investors in the US InsurTech space, as the sector shows signs of steady recovery and renewed momentum.
Average deal value increased to $12.8m as capital deployment increased
The average deal value in Q1 2025 was $12.8m, up from $9.1m in Q1 2024 and slightly lower than the $15.2m average recorded in Q4 2024.
The relatively consistent deal sizes over recent quarters suggest a stable investment environment, with investors showing a willingness to back a mix of mid-sized opportunities while maintaining caution amid broader market headwinds.
High Definition Vehicle Insurance (HDVI), a technology-first commercial auto InsurTech, secured one of the largest InsurTech deals of the quarter with a $40m growth capital raise
The round was co-led by existing investors 8VC, Autotech Ventures, Munich Re Ventures, and Weatherford Capital, and will accelerate the expansion of HDVI’s telematics-based product suite, nationwide coverage, and digital tools for agents.
HDVI’s platform leverages over 7.5bn miles of telematics data to transform underwriting and claims processing, enabling dynamic pricing, real-time risk assessment, and tangible safety improvements for fleet operators.
Since launching HDVI Shift™ in 2021, the company has achieved a 107% compound annual growth rate while maintaining a loss ratio well below industry averages.
With enhanced reinsurance capacity from A+ rated global reinsurers and a leadership transition geared for scaling, HDVI is doubling down on its data-driven approach to redefine commercial auto insurance by aligning safety performance with pricing incentives and operational efficiency.
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