Fintech Market Insights

Is this the end of InsurTech as we know it? Every six months, we compile data on the European InsurTech ecosystem using market research, deal tracking, and our proprietary scouting tools. Below is a summary of our recent webinar, highlighting key KPIs, major trends, and future expectations. 1/ InsurTech KPIs Investment headlines often focus on declines, but the picture is more nuanced in InsurTech. While the number of deals dropped to 61 last year, total funding reached €820m, a year-on-year increase. France led in total funds raised (thanks to massive rounds by Alan and Akur8), the UK topped deal activity, and Germany lagged behind. Outside these core markets, Switzerland and Spain showed strong performance, particularly in "emerging risks." To me, InsurTech investment trends mirror global VC and FinTech dynamics, showing a post-peak stabilization rather than sector-specific decline. 2/ Major Trends The post-pandemic shift from “growth at all costs” to “profitable growth” is reshaping the ecosystem. Startups like Mila and Acheel (France), Clark (Germany), Cuuva (UK), and EIR (Sweden) have achieved profitability, with others aiming to follow by optimizing CAC/LTV ratios and operational efficiency. Meanwhile, private rounds and cost-cutting measures dominated last year, but consolidation is increasing. Allianz Direct was notably active, acquiring Luko, iptiQ, and Friday. CEO resignations were frequent in 2024, with 10 companies—including unicorns like Wefox and Clark—publicly announcing leadership changes. This reflects challenges & opportunities in navigating profitability and market shifts. 3/ What’s Next? a/ AI in Insurance With 30% of InsurTech funding going to AI-first companies, and 18% of deals focused on AI, automation is set to transform the sector. Agentic AI, predicted as the next wave of RPA, could unlock operational efficiencies across the industry. b/ Embedded Insurance Long discussed, embedded insurance is finally gaining traction. Platforms like Qonto and Ornikar did integrate insurance into their ecosystems, reflecting a broader trend where platforms adopt financial services—and insurance is the natural next step. c/ Emerging Risks Startups addressing risks like cybersecurity, carbon credit insurance, and climate-related threats are on the rise, accounting for 20% of deals last year. This segment presents opportunities for technology and data-driven solutions to support incumbents in managing new risks. #insurance #insurtech #venturecapital

The venture-capital world has a serial-entrepreneur problem, and it is gendered. New National Bureau of Economic Research (NBER) research comparing male and female co-founders of the same startups reveals disparities that cannot be explained by founder quality or ambition: → Women make up only 4% of founders with 3+ startups (vs 13.3% of all VC-backed founders) → After a startup failure women are 22.5% less likely to secure venture-capital backing for their next venture → Female serial entrepreneurs raise 53.3% less capital after failures and 24.6% less after successes → Men receive larger deals for founding experience regardless of outcomes. Women are penalized for failures and barely rewarded for successes → When an unrelated women-founded startup fails, it hurts funding prospects for all female founders. However, successes do not create positive spillovers.

𝟭 𝗶𝗻 𝟰 𝘃𝗲𝗻𝘁𝘂𝗿𝗲 𝗰𝗮𝗽𝗶𝘁𝗮𝗹𝗶𝘀𝘁𝘀 𝘁𝗵𝗶𝗻𝗸 𝘄𝗼𝗺𝗲𝗻’𝘀 𝗽𝗮𝗿𝘁𝗶𝗰𝗶𝗽𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗳𝗼𝘂𝗻𝗱𝗶𝗻𝗴 𝘁𝗲𝗮𝗺𝘀 𝗶𝘀 𝗼𝘃𝗲𝗿𝗿𝗮𝘁𝗲𝗱. 𝟭 𝗶𝗻 𝟭𝟬 𝘀𝗮𝘆 𝘁𝗵𝗲𝘆 𝗱𝗼𝗻’𝘁 𝘄𝗮𝗻𝘁 𝘁𝗼 𝗶𝗻𝘃𝗲𝘀𝘁 𝗶𝗻 𝘄𝗼𝗺𝗲𝗻. Together with Laura Koch and Elisabeth Berger (JKU - Institute for Entrepreneurship), I surveyed 361 international VCs using a randomized response technique to bypass social desirability bias. The results aren't unconscious bias. The results are open discrimination. And it’s personal. Some of the strongest startups I’ve seen at the University of Hohenheim were women-led, such as Holiroots or Viva la Faba. What a waste of potential. We knew gender bias existed in venture capital. Now we know how much — and where. 𝗪𝗵𝗮𝘁 𝗻𝗼𝘄? One recommendation from our findings that’s both practical and powerful: 👉 Increase the share of women in venture capital. Why it matters:  • Women VCs show significantly less bias.  • Diverse teams make better decisions.  • Mixed teams perform better. If we want fairer funding decisions, we must rethink who’s making them. 𝗟𝗲𝘁’𝘀 𝗻𝗼𝘁 𝗮𝘀𝗸 𝗶𝗳 𝘄𝗼𝗺𝗲𝗻 𝗮𝗿𝗲 “𝗶𝗻𝘃𝗲𝘀𝘁𝗮𝗯𝗹𝗲.” 𝗟𝗲𝘁’𝘀 𝗮𝘀𝗸 𝘄𝗵𝘆 𝘀𝗼𝗺𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝘀𝘁𝗶𝗹𝗹 𝗮𝗿𝗲𝗻’𝘁. The paper is open access in Venture Capital—An International Journal of Entrepreneurial Finance. Feel free to share it or use it in teaching, workshops, or policy work. 📄 https://lnkd.in/eN4jfJQx

Big News - Sharing A Personal Milestone Announcing The Publication of Our New White Paper "Ushering into the New Era of Financial Inclusion: Enabling Women and Women-Led Organisations." Collaborating with my co-authors, Ayush Tripathi and Soham Jagtap , from The Dialogue, on our shared goal and unwavering commitment to championing the financial empowerment of women has led to this latest research. This project means a lot to me, and I feel incredibly proud of what we've achieved. Together, we've delved deep into the challenges and opportunities that define the financial landscape for women in our country. Current State of Financial Inclusion for Women in India >In India, women make up only about 32.8% of the labour workforce, which is considerably lower than the global average of 47%. >Despite constituting nearly half of the population, women contribute significantly less to India’s GDP, accounting for just 17% compared to the global average of 37% > Only 10% of women in India are borrowers compared to 15% in men >  Women receive credit equal to just 27% of their deposits, whereas men receive 52%. > Despite 51% of women being aware of microcredit, only 11% have availed such loans. Here are three powerful insights from our research that we believe can spark real change: 1/ Harnessing Digital Financial Infrastructure: By leveraging platforms like UPI and the JAM Trinity, we can open up financial access for women, especially in rural areas. Tailoring these models to be more gender-inclusive is key to bridging the financial inclusion gap. 2/ Empowering Through Community: Strengthening Self-Help Groups (SHGs) and utilizing on-ground networks like Bank Sakhis can empower women at the grassroots level. These networks provide essential financial literacy and access to credit, making a tangible difference in their lives. 3/ Innovative Public-Private Partnerships (PPPs): Collaborations between the government and private sector can drive innovative financial solutions. From digital banking ecosystems to customized credit products, these partnerships can support and uplift women entrepreneurs. However, Our work is not done yet. Together, let's champion initiatives that empower women, break down barriers, and pave the way for a more equitable - There IS a business case for empowering women financially. Here are some key stats that highlight this immense potential- > Accelerating women's entrepreneurship in India could generate over 30 million women-owned enterprises, creating 150-170 million jobs. > Increased adoption of digital financial services could raise India’s GDP per capita by 3 to 4 percentage points. > Women-led startups deliver a 35% higher ROI compared to those led by men. This journey has been deeply personal. And, I am honored to have worked alongside Ayush and Soham, Thank you for the collaboration. I look forward to the positive impact our work will have on promoting financial empowerment for women.

It's been an incredible 2 years working alongside some phenomenal women I now get to call friends. The task was to unpack the challenges faced by high growth women-led businesses, of which there are many. I won't dive into that, because we all know them. I would like, instead, to focus on the recommendations. There are 7 and they are all achievable. Recommendation 1: Investors should better monitor the proportion of funding they invest in female founded businesses. The Taskforce believes that by encouraging more investors to collect data on the proportion of funding they allocate to female-led businesses they will better target action to increase it. Recommendation 2: Firms should set their own voluntary targets for the number of women in senior investment professional roles and report against them on their websites. The Taskforce’s view is that increasing diversity of senior investment professionals will help increase investment in women-led businesses - venture capital firms with a female partner are more than twice as likely as firms without to invest in a company with a woman on the management team. Recommendation 3: Increase signatories to the Investing in Women Code, particularly for private debt funds and Limited Partners, to boost investment in women-led enterprises. The Code is a voluntary commitment from financial services to support female entrepreneurship. The Taskforce recommends an increased push to get private debt funds and Limited Partners to sign up to the code to increase the flow of funding to female founded businesses. Recommendation 4: Drive inclusive behaviour in the investment ecosystem. The Taskforce has submitted a response to the Financial Conduct Authority’s consultation on diversity and inclusion in the financial sector which includes a call to reduce the threshold for companies below 251+ employees to incorporate venture capital firms (most of which are SMEs), to drive greater diversity in the companies and, thus, their decision making. Additionally they have called for the requirement for companies to have a carers’ leave policy in place, as they view this as an important factor in returning talent and retaining gender diversity at senior levels. Recommendation 5: Roll out Female Founder Growth Boards across England. Almost 46% of the UK’s high-growth enterprises are located in London. The Taskforce believes this is due to easier access to funding, connections, knowledge sharing, talent, and customer base. They have created a ‘blueprint’ for regions outside London to replicate that environment. Female Founders Growth Boards bring together public and private sector stakeholders to create a pool of resources. The blueprint also includes a dashboard, collating data to highlight opportunities and monitor progress. Taskforce member Zandra Moore has already set up a Female Founder Growth Board in Leeds. The aim is for the blueprint to be self-perpetuating, being replicated by more cities across England.  

Despite a challenging economic climate, Southeast Asia's InsurTech sector has demonstrated remarkable resilience last year, with a significant surge in deal value reminiscent of the boom in 2020. Strategic investments and a focus on established players have led to substantial funding rounds, while emerging markets in the region are beginning to claim a larger slice of the investment pie. A recent report by EY, in partnership with Singlife, delves into these key trends and opportunities, charting the dynamic landscape of the ASEAN InsurTech sector- 💹 Deal Value Surge: Southeast Asia's InsurTech sector experienced a significant rise in deal value last year, reaching $2,351m from 27 deals, nearly mirroring the peak of 2020 💼 Investor Confidence: Investors are showing a strong preference for established InsurTech firms with proven track records. 🌏 Regional Investment Shift: Singapore maintains its lead in InsurTech funding, but Indonesia, Thailand, and Malaysia are quickly becoming attractive investment destinations due to their favorable demographics and infrastructure. 📈 Market Maturity: The InsurTech market is maturing, evidenced by a diversification in exit strategies, including IPOs, which points to a growing range of investment and liquidity options. 🤝 Strategic Partnerships: Strategic partnerships and investments from tech giants and traditional financial institutions in SEA InsurTech companies highlight a strong commitment to digital transformation and enhancing customer experiences. As technology advances, InsurTech firms must concentrate on customer-centric innovations, utilizing AI and digital platforms to cater to the needs of modern consumers. Simultaneously, they should evolve their distribution models to facilitate rapid growth and expand market reach. Do give a read to the article. #InsurTech #innovation #Investment #EY #SEA Varun Mittal 海王-米塔尔, Rahul Vardhan, Patricia Davies, Vaibhav Mishra, Jatin Bhutani, Ankit Srivastava, Sachin Sharma, Shobhit Sharda

A meager 2% of VC capital is invested in female-founded companies.  
Many people I know are working hard to highlight the funding gap between male and female-led companies, exploring the root causes, and proposing actionable solutions, including my colleagues, Teresa Wells, CFA Kate Nevin Lenore Champagne Beirne Research shows: 🚩Female-founded companies command only 7% of VC deal counts 🚩Teams with both male and female co-founders receive just 14.2% 🚩Only 2% of VC dollars were invested in female founded companies  🚩Women received just 11.4% of the total Small Business 504 Loans Yet: Rogue Women’s Fund Stats (as of 2020): Women led companies have 63% higher returns over 10 years period and invest up to 90% back to community and family. The Root Causes Identified: ➡️ Women are underrepresented in VC decision-making roles (just 11% of VC partners are women) ➡️ Childcare is unaffordable – 46% of women left jobs in 2021 for this reason ➡️ Women with higher VC positions in at male dominated firms protect their status by backing male biases ➡️ Gender stereotype and display of more feminine behavior (practicality) during pitches is viewed as lacking vision, while overinflated pitches and numbers are rewarded. Harvard Business School 2017 Pitch Study ➡️ Antiquated small business lending diligence biased against women. United States Senate Small Business & Entrepreneurship Committee 
 Proposed Strategies for Change:  ✅Raise awareness of the statistics above - go see the Show Her The Money documentary! ✅Get more women into VC investor roles  ✅Change the way diligence is done to address biases ✅ Create different fund structures that accommodate venture, private equity and debt ✅Promote networking opportunities through organizations like WOMEN IN TECH®- Global Movement @womenfundwomen ✅Help more women pursue careers in STEM and higher education 
Shoutout and thank you to the amazing women and their male allies who are doing this work and believe we can invest in the female operators to increase our global economy. #womeninbusiness #diversityinvc #venturecapital #privateequity #smb

Here's the next set of predictions from our research on the future of insurance, focusing on industry and external factors that will drive change in the coming years. First, the rise of digital insurers is transforming the landscape. These fully online insurers operate through platforms and apps, emphasizing flexible, customer-centric solutions and offering personalized, on-demand products tailored to individual needs. And they're coming - we're personally involved in several 'soon-to-be-launched'... Second, customer expectations are evolving rapidly. There’s a growing demand for transparency, personalized and tailored services, and seamless access across both digital and physical channels, pushing insurers to adapt quickly. Third, industry consolidation is reshaping the market. Through mergers and acquisitions, insurance firms are forming larger, market-dominant companies, which allows them to expand their product offerings and operational scope significantly. Fourth, regulatory changes are influencing insurance practices. New laws are being introduced around data privacy, AI usage, and climate risk reporting, requiring insurers to stay compliant while innovating their operations. Finally, climate risks and sustainability are becoming central to the industry. Insurers are increasingly focusing on environmental risks in their coverage, assessing climate-related challenges, and integrating ESG principles into their strategies. I’d love to hear your perspective on these trends. How do you think they’ll shape the future of insurance? Let’s discuss in the comments. Based on 18 months of extensive work at eData Information Management with the C-level of most insurers in the region.

There is a belief that one of the reasons there aren’t as many #women #entrepreneurs is due to #bias against women in general. New research suggests that the problem isn’t necessarily due to bias against women in general per se, but bias against women whose ventures are particularly high in #novelty. Meaning, ventures that are highly novel are rewarded when they are led by #men but punished when led by women. Zhenyu Liao Jack Zhang Nan Wang William Bottom Dirk Deichmann pok man tang do a fantastic job of showing, across both naturalistic and more controlled field experiments that highly novel ventures are seen as violating norms when the entrepreneur is a woman than when the entrepreneur is a man. In one of their studies, they show that #SharkTank judges express more concerns about #normviolations when a woman’s venture is highly novel than when a man’s venture is highly novel. In more tightly controlled studies, they take two ventures that are pre-tested as being highly novel vs. not and use AI-generated voices to manipulate the gender of the entrepreneur giving identical pitches. They find that, just like the Shark Tank findings, highly novel woman-led ventures are seen as more norm violating than highly novel man-led ventures (even though the ventures, in this case, are identical). And whereas novelty might normally be seen as a good thing in entrepreneurship, novelty that is norm violating is not, and given that highly novel women-led ventures are seen as more norm violating, they generate less enthusiasm and obtain lower #funding from potential #investors. What these findings suggest is that it’s not just that people have an issue with highly #agentic women (because to be an entrepreneur, you have to have at least some level of agency) but that they have issues with highly agentic women whose ideas themselves are #boundarybreaking. Whereas breaking boundaries might well be seen as a good thing in most cases, apparently it is not when the person breaking boundaries is a woman. https://lnkd.in/ewtiw2PV

As a proud alum of the Boston Consulting Group (BCG), I look forward do their Annual State of InsurTech report—always data-rich and insight-packed. 🚨 2024 funding hit a five-year low at $4.2B  (down 21% YoY), despite InsurTech growing at a 22% CAGR since 2020 💰 Series C funding surged +96% as investors doubled down on fast-maturing scale-ups 📈 Public InsurTechs outperformed the market (+42%), with Disruptors soaring +139% as profitability took center stage 🧠 Generative AI is proving its value, accounting for 46% of all deal activity, with use cases expanding from automation to core underwriting. Insurers are taking note: GenAI mentions on earnings calls have quadrupled since 2020 🔥 The next chapter of InsurTech is being shaped by those who combine AI-driven transformation with disciplined, profit-first execution. 🔗 Read the full report here: https://lnkd.in/eG6fangX Guglielmo de Stefano Nadine Moore Pablo Segovia Smith Jürgen Jürgen Bohrmann Teresa Schreiber Gareth Ng #InsurTech #BCGAlum #GenAI #InsuranceInnovation #VentureCapital #Startups StratMaven