Israel-based venture capital house FinTLV has raised $120m for its second fund targeting global growth-stage InsurTech and fintech companies.
FinTLV has already made a name for itself following investments in InsurTech-related unicorns Hippo insurance, Next insurance and Unqork.
Firm founding partner Gil Arazi said, “The insurance industry is a huge industry undergoing a fundamental disruption.
“The revenue of the US insurance industry is five times larger than that of the banking industry, yet the technology used by most insurance companies is antiquated.
“The leading InsurTech companies drive this revolution. The unique understanding of this market as well as the rich network with many tens of insurance players around the globe give us access to the most lucrative investment opportunities in the field.”
FinTLV led a $150m financing round for Hippo Insurance to give the company a $1.5bn valuation, and invested about $50m as part of a $250m round in Next Insurance at a valuation of about $2bn.
Avishai Silvershatz, managing partner of the fund, said, “In order to be a successful InsurTech company, a company needs to have not only great technology but also the ability to cope with high regulatory barriers, to meet capital solvency requirement, to establish relationships with other players in the insurance ecosystem, to build expertise in risk assessment and on-line marketing, to have financial sophistication, to manage M&A activities and more.
“Once these skills are mastered, these hurdles provide the successful companies with a significant moat.
“The InsurTech market is on fire – for a good reason: many of these companies will become highly successful, multi-billion-dollar companies. But it takes careful examination to choose the winners.”
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