Key US InsurTech investment stats in Q1 2026:
- US InsurTech funding spiked by 94% YoY in Q1 2026
- Average deal value increased by 3x to $42.6m as investors prioritised larger deals
- Gyde, an AI-native brokerage platform designed to help brokers guide clients through insurance, health and wealth decisions, raised $60m in a funding round, marking one of the biggest US InsurTech deals of the quarter
US InsurTech funding spiked by 94% YoY in Q1 2026
US InsurTech recorded $766.2m in funding across 18 deals in Q1 2026, represents a 94% increase on the $396m raised across 31 transactions in Q1 2025.
When set against the more recent Q4 2025, the gap narrows considerably, with Q1 2026 falling only 8% short of the $834.2m that made Q4 2025 the strongest quarter for capital deployment across the period.
Deal volumes have contracted steadily across the three periods, falling from 31 in Q1 2025 to 28 in Q4 2025 and 18 in Q1 2026, suggesting that while aggregate funding levels have broadly held up, investors are concentrating their activity among a smaller number of opportunities.
Average deal value increased by 3x to $42.6m as investors prioritised larger deals
That contraction in deal count, set against relatively resilient funding totals, has driven average deal values sharply higher.
At $42.6m per transaction, Q1 2026 comfortably outpaces both prior periods, sitting 43% above the $29.8m average in Q4 2025 and more than three times the $12.8m average recorded in Q1 2025.
The consistent upward movement in average deal size points to a market in which investors are committing more meaningfully to individual transactions, even as the overall volume of activity has eased.
It is a pattern that speaks to growing selectivity rather than retreat, with capital being channelled into fewer but more strategically significant investments.
Gyde, an AI-native brokerage platform designed to help brokers guide clients through insurance, health and wealth decisions, raised $60m in a funding round, marking one of the biggest US InsurTech deals of the quarter
The round was led by Lightspeed, with participation from Optum Ventures, Crystal Venture Partners, Virtue, MVP Ventures and a number of endowment funds.
The company targets a structural gap in the insurance brokerage industry, where brokers have historically been constrained by outdated tools and fragmented systems across the Medicare Advantage, Employee Benefits and Individual markets.
At the core of its offering are GydeOS, its broker-facing operating system, and Gia, an intelligent assistant, which together automate administrative tasks while freeing brokers to focus on higher-value client advisory work.
Proceeds will be used to accelerate platform development and expand its partner cohort across the insurance market.
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