German digital insurer Wefox is reportedly in discussions to raise funding at a valuation of $5-6bn in the coming weeks.
According to a report by Bloomberg, the Berlin-based InsurTech startup is looking to raise several hundred million dollars, which could be finalised in the next few weeks. The information was provided by “people with knowledge” of the matter, who asked Bloomberg to keep their identity private.
This funding could see Wefox nearly double its valuation from last year. The company raised $650m in a Series C round in June last year. The round saw it reach a $3bn valuation, and was the largest Series C to date for an InsurTech globally.
Launched in 2015 by Julian Teicke, Fabian Wesemann and Dario Fazlic, Wefox sells insurance through intermediaries and not directly to customers. Most insurance products are still sold by agents and that’s why Wefox has 700 agents selling Wefox products exclusively. It also partners with associate brokers — around 5,000 can distribute Wefox products.
Venture capitalist have warned of a challenging environment for the technology industry. According to Bloomberg, Sequoia Capital recently warned portfolio company executives that the good times were over, and Lux Capital told founders that job cuts would be needed as “the world is falling apart.”
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