InsurTech VC MTech Capital looks to raise up to $150m

May 30, 2018

InsurTech-focused venture capital firm MTech Capital is looking to raise up to $150m for its flagship fund, FinTech Global can reveal.

MTech Capital Fund is yet to raise any capital, according to the latest US Securities and Exchange Commission filing. It is unclear if the $150m figure is a target or hardcap.

The firm, which has offices in Los Angeles and London, invests in global InsurTech companies. MTech was founded in 2016 by former FinTech Collective venture partner Brian Mcloughlin and former Bank of America Merrill Lynch managing director Kevin McLoughlin.

Previous to launching MTech, Kevin McLoughlin served at Bank of America Merrill Lynch as a managing director and head of global insurance investment banking for just over two years. In this position he advised global insurance groups on M&A, strategy, capital raising, and investor and market issues.

Prior working at Merrill Lynch, he served in a similar position at Citi between 2006 and 2014, and at UBS for nine years before that. He has also served as a senior investment officer at AIG.

Brian Mcloughlin recently served as a special advisor at Thayer Street Partners from 2014 up until the end of 2017. Prior to the role, he was a venture partner at FinTech Collective, and a partner at Upfront Ventures, where he served for 13 years.

There has been a slew of investments in the InsurTech space this month, with two companies closing deals this week. India-based Toffee Insurance collected $1.5m to support the development of its online insurance platform.

‘Pay-as-you-fly’ drone insurance company Flock also closed an investment this week, bagging £2.25m to support the launch of its services internationally.

Global InsurTech funding reached $2bn last year, an increase of nearly $400m from 2016’s total, according to data by FinTech Global. While the total investment volume was lower than the amount deployed in 2015, there were 74 more transactions completed. The high funding level in 2015 was due to a colossal $937m investment into China-based digital insurer ZhongAn.