Key US InsurTech investment stats in Q1 2025:
- US InsurTech funding rebounded by 24% QoQ in Q1
- Average deal value rose to $12.8m as investors prioritised larger deals
- 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 funding rebounded by 24% QoQ in Q1
In Q1 2025, the US InsurTech sector recorded $396m in funding across 31 deals, marking a recovery from the previous two quarters.
This represents a 37% increase in funding compared to Q1 2024, which saw $290m raised across 32 deals, and a 24% rise from Q4 2024, which recorded $320m from 21 deals.
Despite the growth in capital, deal volume remained relatively stable compared to Q1 2024, dipping slightly by 3%.
The most significant spike in funding occurred in Q3 2024, driven by two outsized transactions: a $1bn mega-deal and a $242m deal.
These skewed the quarterly totals, temporarily inflating the perception of sector strength.
By comparison, Q1 2025’s funding represents a more balanced return to typical investment patterns, with fewer anomalously large transactions.
Average deal value rose to $12.8m as investors prioritised larger deals
The average deal value in Q1 2025 was $12.8m, up from $10.3m in Q4 2024 and considerably higher than the $9.1m average in Q1 2024.
This suggests that investors are allocating larger cheques to a more concentrated number of opportunities, potentially reflecting increased confidence in select InsurTech firms that have demonstrated strong fundamentals or scalable business models.
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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