Key US InsurTech investment stats in Q1 2026:
- US InsurTech funding rose by 15% YoY in Q1
- California continued to dominate the US InsurTech marketplace as companies based in the state secured four of the top 10 deals for the quarter
- Corgi, an AI-native full-stack insurance carrier built specifically for startups, raised $108m in funding, making it the biggest US InsurTech deal of the quarter
US InsurTech funding rose by 15% YoY in Q1
US InsurTech investment in Q1 2026 reached $454.7m across 19 deals, representing a 15% increase in funding compared to the $396m raised across 31 deals in Q1 2025.
Deal volume, however, fell sharply, dropping by 39% year-on-year, meaning the rise in total capital raised was driven by a significant increase in average deal size rather than broader transaction activity.
The average deal value climbed to $23.9m in Q1 2026, up from $12.8m in Q1 2025, suggesting that investors are channelling larger sums into a more selective pool of companies.
This pattern points to a maturing funding environment in which capital is being deployed with greater conviction and discrimination, rather than spread across a wider range of earlier-stage opportunities.
California continued to dominate the US InsurTech marketplace as companies based in the state secured four of the top 10 deals for the quarter
The state-level breakdown of the top 10 deals in Q1 2026 shows a tightening of geographic concentration compared to Q1 2025, with fewer states represented but some notable shifts in their relative standing.
California retained its position as the leading state in both periods, though its share of top deals narrowed from six in Q1 2025 to four in Q1 2026, suggesting that while it remains the dominant centre of US InsurTech activity, its grip on the largest transactions is easing somewhat.
New York strengthened its presence considerably, rising from one top deal in Q1 2025 to three in Q1 2026, while Texas also expanded its share, moving from one deal to two.
Illinois secured one top deal in each period, providing a thread of consistency across both.
Ohio, which featured in Q1 2025, did not appear in Q1 2026, reflecting a degree of consolidation around the sector’s most established hubs as investors focus their largest commitments on a narrower set of states.
Corgi, an AI-native full-stack insurance carrier built specifically for startups, raised $108m in funding, making it one of the top US InsurTech deals of the quarter
The round drew backing from Y Combinator, Kindred Ventures, Contrary, Glade Brook Capital Partners, Seven Stars, Leblon Capital, Fellows Fund, Alumni Ventures, Quadri Ventures and others, encompassing both a Series A and a prior seed round.
The company recently received regulatory approval to launch as a full-stack carrier, enabling it to design and manage insurance end to end across underwriting, claims and policy operations.
Its product suite covers directors and officers liability, errors and omissions, cyber, commercial general liability, fiduciary liability and AI liability, among others, tailored to the needs of venture-backed and high-growth businesses.
Since receiving full regulatory approval in July 2025, Corgi has surpassed $40m in annual recurring revenue, reflecting strong demand for insurance products built around speed and flexibility.
Proceeds will be used to scale its startup insurance line, expand coverage and further develop the AI systems underpinning its operations.
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