Key US InsurTech investment stats in Q4 2025:
- US InsurTech funding surged by 2.6x YoY in Q4
- Average deal value increased to $29.8m as investors demonstrated greater confidence in the market
- CyberCube, a cyber risk analytics provider serving the global insurance and reinsurance industry, secured one of the biggest US InsurTech deals of the quarter after receiving an investment of more than $180m from Spectrum Equity
US InsurTech funding surged by 2.6x YoY in Q4
In Q4 2025, the US InsurTech sector experienced an increase in both deal activity and funding compared to the same quarter last year.
A total of 28 deals were recorded in Q4 2025, representing a 33% increase from the 21 deals completed in Q4 2024.
Funding also grew significantly, with InsurTech firms raising $834.2m in Q4 2025, a 2.6x increase from the $319.7m raised in Q4 2024.
This improvement in both deal flow and capital deployment indicates strengthening investor interest in the US InsurTech market year on year.
When comparing Q3 to Q4 2025, deal volume declined as the number of transactions fell from 32 to 28 deals, marking a 13% QoQ decrease.
However, total funding in Q4 2025 increased by 49% from $559.5m in Q3 2025, suggesting that although fewer deals were completed during the quarter, larger amounts of capital were committed.
Average deal value increased to $29.8m as investors demonstrated greater confidence in the market
The average deal value in Q4 2025 was $29.8m, an increase from the $15.2m average in Q4 2024 and above the $17.5m average recorded in Q3 2025.
This represents a 96% increase year on year and a 70% increase quarter on quarter, highlighting a shift towards larger transactions within the US InsurTech market.
CyberCube, a cyber risk analytics provider serving the global insurance and reinsurance industry, secured one of the biggest US InsurTech deals of the quarter after receiving an investment of more than $180m from Spectrum Equity
The company provides software-as-a-service modelling tools that enable insurers, reinsurers and brokers to quantify cyber risk in financial terms, supporting underwriting, portfolio management and capital allocation decisions across the cyber insurance market.
CyberCube’s analytics are used by more than 130 organisations across the insurance value chain, including 75% of the top 40 US and European cyber insurers by gross written premiums and the majority of the top 20 global brokers.
The new capital will support continued product innovation and global expansion as the company strengthens its modelling capabilities for cyber catastrophe exposure and portfolio risk management, positioning it at the centre of the rapidly expanding cyber insurance ecosystem.
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