Key global InsurTech investment stats in Q4 2025:
- Global InsurTech funding hit five-quarter high in Q4 after a 2.5x YoY increase
- Deals over $100m returned in the last quarter of the year as investors prioritised larger deals
- Federato, a Californian InsurTech specialising in AI-native software for insurance underwriting and policy administration, secured one of the biggest InsurTech deals of the quarter with a $100m Series D capital raise
Global InsurTech funding hit five-quarter high in Q4 after a 2.5x YoY increase
In the fourth quarter of 2025, the global InsurTech market recorded a strong increase in funding alongside a more mixed trend in deal activity.
Q4 2025 closed with 47 deals, representing an 8% decline from the 51 deals recorded in Q3 2025 but a 21% increase from the 39 deals seen in Q4 2024.
Total funding in Q4 2025 reached $1.1bn, marking a 48% increase from the $751.6m raised in Q3 2025 and a 2.5x surge from the $444.4m recorded in Q4 2024, making it the highest funding level across the period.
The average deal size rose significantly to $23.6m in Q4 2025, compared with $14.7m in Q3 2025 and $11.4m in Q4 2024, indicating a shift towards larger transactions.
Deals over $100m returned in the last quarter of the year as investors prioritised larger deals
Funding from deals under $100m totalled $547.1m in Q4 2025, down 16% from the $651.6m recorded in Q3 2025 but up 23% from the $444.4m seen in Q4 2024.
In contrast, larger deals valued at $100m or more reached $564m in Q4 2025, representing a 464% increase from the $100.0m raised in Q3 2025 and marking a return of high-value transactions, as no such deals were recorded in Q4 2024.
This also represents the highest level of funding from deals over $100m across the period and was the key driver behind the overall funding peak in Q4 2025.
Federato, a Californian InsurTech specialising in AI-native software for insurance underwriting and policy administration, secured one of the biggest InsurTech deals of the quarter with a $100m Series D capital raise
The round was led by Growth Equity at Goldman Sachs Alternatives, alongside continued backing from Emergence Capital, Caffeinated Capital, StepStone Group and Pear VC, as the sector accelerates its shift away from legacy systems towards AI-driven operating models.
Founded in 2020 by CEO Will Ross and CTO William Steenbergen, the San Francisco-based company has developed an end-to-end platform spanning the full insurance policy lifecycle, including midterm endorsements, renewals, extensions and premium audits, while using AI to evaluate and rank submissions in real time for underwriters.
The latest funding follows its $40m Series C completed in November 2024, taking total capital raised to $180m, and will be deployed to support ongoing product development, international expansion and aggressive hiring across data science, engineering, design, marketing and product teams as Federato seeks to capitalise on the rapid adoption of agentic AI across insurance operations.
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