Key US InsurTech investment stats in Q1 – Q3 2025:
- US InsurTech deal activity held steady at 110 transactions in Q1-Q3
- California continued to dominate the US InsurTech market as companies in the state secured 31% of all deals in the country
- High Definition Vehicle Insurance (HDVI), a technology-first commercial auto InsurTech, secured one the largest US InsurTech deals of the first three quarters with a $40m growth capital raise
US InsurTech deal activity held steady at 110 transactions in Q1-Q3
During the first three quarters of 2025, the US InsurTech industry remained subdued, with funding activity declining significantly despite deal volume holding steady.
The sector recorded 110 funding rounds, unchanged from the 110 deals completed in Q1-Q3 2024, highlighting a stagnation in transaction activity.
However, total funding fell sharply to $1.4bn, a 41% decrease from the $2.4bn raised during the same period in 2024.
This substantial reduction in capital deployed, despite stable deal numbers, underscores a more selective investment environment in which investors continued to participate in deals but at considerably lower transaction sizes.
California continued to dominate the US InsurTech market as companies in the state secured 31% of all deals in the country
California was the most active InsurTech state in Q1-Q3 2025, attracting 34 deals (31% share), a 17% increase from the 29 deals (26% share) completed in Q1-Q3 2024.
New York followed with 31 deals (28% share), a 41% rise from the 22 deals (20% share) in the previous year.
Florida ranked third with 8 deals (7% share), replacing Texas, which had completed 7 deals (6% share) in Q1-Q3 2024.
Notably, both California and New York increased not only their deal volumes but also their percentage shares, indicating that activity became further concentrated within key states even as overall investment levels declined.
High Definition Vehicle Insurance (HDVI), a technology-first commercial auto InsurTech, secured one the largest US InsurTech deals of the first three quarters 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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