You would be forgiven for anticipating that the startup category would find itself in dire straits given the recent run of concerned headlines. Not much of it.
Insurtech fundraising was strong in the year, despite some notable public-market misses. A number of U.S.-based insurtech startups went public in 2020. The cohort was decimated by valuation declines after some initial strong trading.
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In the wake of the mess, we anticipated that tech companies targeting the back end of the global insurance market would be more active. And yet. Some of the insurance-focused technology companies in the latest Y Combinator cohort want to write policies.
Not all, of course. Our hunch is that insurtech companies are working on the mechanics of the insurance industry. We were too pessimistic about the rest of the insurtech category.
The insurtech startup category is still alive and well. There is reason to believe that there could be more of the same in 2022. Here is the lay of the land for insurtech startups in capital terms, using a Crunchbase query initially compiled by its News team.
If you are wondering why we aren't shouting about a $400 million decline on a year-over-year basis, let us help. The pace and depth of private market disclosures are different from what public companies do. They are not complete and laggier. We expect the Q1 2022 number to be close to its year-ago comp as time goes on.
The fact that insurtech fundraising has not fallen apart is more important than any wiggle in the dollar amount. It is still chugging along. Good news for the startups building in the space today. Let's talk about what they are focused on.
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