Key European InsurTech investment stats in Q1 2025:
- European InsurTech funding decreased by 7% in Q1 2025 YoY
- Trend analysis showed a projected 10% increase in funding for the year as investors focus on deals of $100m and over
- Quantexa, a global AI, data and analytics software company pioneering Decision Intelligence solutions, secured one of the biggest European InsurTech deals of the quarter with a $175m Series F funding roundÂ
European InsurTech funding decreased by 7% in Q1 2025 YoY
In Q1 2025, the European InsurTech sector experienced a noticeable decline in both deal volume and funding compared to the same period in 2024.
A total of 12 deals were recorded, down 29% from the 17 deals completed in Q1 2024.
Funding also dropped to $236m, a 7% decrease from the $254m raised in the same quarter the previous year.
Despite this dip, Q1 2025’s funding remained relatively stable, suggesting that while investor appetite may be more selective, capital remains available for promising opportunities.
Trend analysis showed a projected 10% increase in funding for the year as investors focus on deals of $100m and over
If the Q1 2025 trend were to continue across the rest of the year, 2025 would close with around 48 deals and $944m in total funding.
This would mark a 16% drop in deal volume from the 57 deals completed in 2024, but a 10% increase in total funding from the $859m raised last year.
This suggests a shift in investor focus from broad activity to targeted, higher-value investments.
The average deal size in Q1 2025 was $19.7m, compared to $14.9m in Q1 2024, indicating a market preference for more capital-efficient or late-stage InsurTech firms with stronger commercial traction.
Deals under $100m accounted for $61m in Q1 2025, down 76% from the $254m in Q1 2024, when all funding fell under this threshold.
Meanwhile, deals valued at $100m or more made up $175m in Q1 2025 — a category that had no activity in Q1 2024.
This stark shift reveals a significant reallocation of capital away from early-stage rounds and towards large-scale investments.
For context, in 2024 as a whole, deals under $100m accounted for $545m of the $859m total, but Q1 2025’s sharp drop in this segment signals a potential full-year downturn unless smaller rounds rebound in the coming quarters.
Quantexa, a global AI, data and analytics software company pioneering Decision Intelligence solutions, secured one of the biggest European InsurTech deals of the quarter with a $175m Series F funding round
The round was led by Teachers’ Venture Growth, part of the Ontario Teachers’ Pension Plan.
The investment valued the UK-based company at $2.6bn and will support its ongoing platform innovation, strategic expansion into North America, and pursuit of targeted acquisitions.
With a Decision Intelligence platform designed to unify siloed data and enhance operational decision-making across sectors such as financial crime, risk, fraud, and KYC, Quantexa has seen rapid growth, adding 23 new customers in 2024 and achieving nearly 40% licence revenue growth.
The funding will also accelerate partnerships, including its AI-powered offerings through Microsoft Fabric and Azure Marketplace, while enabling deeper public sector engagement as the company expands its footprint of 16 offices and more than 800 employees globally.
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