Global insurtech funding held steady at $1.4B for the second consecutive quarter in Q3’24. However, unlike the prior quarter, most of the funding came from just 5 mega-rounds (deals worth $100M+).
Q3’24 also saw the most selective dealmaking environment in years, although there were notable bright spots — in the early stages of funding, in the life & health insurance segment, and among France’s insurtechs.
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Below, we cover key shifts in the landscape, including:
Quarterly insurtech funding holds mostly steady from Q2’24, at $1.4B. In Q3, the funding was evenly split across both P&C and life & health (L&H) segments — one of just 3 quarters since 2020 where L&H insurtechs have rivaled P&C for quarterly funding.
Insurtech fared better in Q3’24 than the broader venture environment, which saw funding decrease 20% quarter-over-quarter (QoQ). In fact, on a year-over-year basis, insurtech funding grew in Q3 by 27%.
A majority of insurtech funding goes to $100M+ mega-round deals for the first time since Q3’22. Q3’24 saw mega-round funding and deals — $0.8B across 5 deals — surge to a 2-year high.
Altana AI, which offers a supply chain risk platform, raised the largest insurtech equity deal in 2024 so far ($200M Series C) from investors including Google Ventures and Salesforce Ventures. The deal valued Altana AI at $1B, making it the first new insurtech unicorn of 2024 so far. Insurtechs that offer Medicare Advantage plans raised 2 of the other mega-round deals, Devoted Health ($112M Series E) and Zing Health ($140M Series A).
Insurtech deal count falls to an 8-year low. Q3’24 saw global insurtech deal count decline to 77, falling 10% QoQ and 42% YoY. Q2’16 was the last quarter to see fewer insurtech deals (60).
Even so, the drop is in line with a broader decline in venture dealmaking. Also, across insurtech and the broader venture environment, the percentage of deals by deal stage (i.e., early, mid-, late, or other) has been without drastic swings in recent years.
The median early-stage insurtech deal size has reached a record high, increasing from $2.5M in 2023 to $4M in 2024 so far. This signals that investors remain bullish on early-stage dealmaking despite the broader decline in funding and deals.
Comparatively, the median early-stage insurtech deal size only reached $3M in 2022 amid the venture funding boom.
Three of the 10 largest insurtech deals in Q3’24 were early-stage.
France-based insurtechs raise 83% of Europe’s insurtech funding in Q3. Five France-based insurtechs raised a combined $385M in Q3’24, including mega-round deals for health insurer Alan ($193M Series F) and pricing platform Akur8 ($120M Series C).
Globally, only insurtechs from France and the US appeared among the 10 largest insurtech deals of the quarter.
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