Key US InsurTech investment stats in Q1 2026:
- US InsurTech deal activity reduced 35% YoY
- Trend analysis showed a projected 30% fall in funding for 2026 driven by a drop in deals under $100m
- Lassie, a prevention-first pet insurer that combines insurance coverage with everyday pet care, raised $75m in a Series C round, making it one of the biggest US InsurTech deals of the first quarter
UK FinTech deal activity reduced 35% YoY
US InsurTech raised $484.7m across 20 deals in Q1 2026, a 22% increase in funding compared to the $396m recorded in Q1 2025, though deal volume fell sharply by 35% from 31 transactions over the same period.
That combination drove the average deal size in Q1 2026 to $24.2m, a significant step up from $12.8m in Q1 2025 and above the $19.9m average seen across 2025, underscoring a market in which capital is being directed into a smaller number of more substantial opportunities.
Set against 2025’s total of $2.3bn across 114 deals, Q1 2026 represents 21% of last year’s funding from just 18% of the deal count, a ratio that reflects the growing weight of individual transactions.
Trend analysis showed a projected 30% fall in funding for 2026 driven by a drop in deals under $100m
If Q1 2026’s trajectory were maintained for the remainder of the year, 2026 would close with around 80 deals and $1.9bn in total funding, pointing to a 30% reduction in deal volume and a 16% decline in capital raised compared to 2025.
The deal size breakdown in Q1 2026 reveals a market where larger transactions have begun to emerge after being entirely absent in Q1 2025, when all 31 deals fell below the $100m threshold.
In Q1 2026, transactions of $100m or more contributed $108m, accounting for 22% of total quarterly funding, a notable shift given that no such deals were recorded in the equivalent period a year earlier.
Smaller deals, meanwhile, raised $376.7m in Q1 2026, a 5% decrease from the $396m that sub-$100m transactions generated across the whole of Q1 2025.
Across 2025, deals under $100m represented 66% of total funding at $1.5bn, with larger transactions contributing the remaining $764m, or 34%.
The emergence of $100m-plus deals in Q1 2026, set against a backdrop of fewer but larger transactions overall, suggests that US InsurTech is entering a phase where scale and demonstrated resilience are increasingly the price of admission for meaningful investment.
Lassie, a prevention-first pet insurer that combines insurance coverage with everyday pet care, raised $75m in a Series C round, making it one of the biggest US InsurTech deals of the first quarter
The round was backed by Balderton Capital, Felix Capital, Inventure, Passion Capital and Stena Sessan.
Founded in Stockholm, the company currently operates in Sweden, Germany and France, insuring around 250,000 pets, and reports more than $100m in annual recurring revenue.
Automation sits at the heart of its operating model, with around 60% of claims in Germany now processed end to end in approximately six minutes.
The company’s app-based approach drives daily engagement well above industry norms, with active usage of around 25% against a sector average of 8 to 9%.
Lassie is targeting a fast-growing market, with the global pet insurance sector forecast to reach around $80bn by 2033, driven by rising veterinary costs and shifting attitudes to pet ownership across Europe. Proceeds will be used to accelerate expansion into further European markets.
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