Insurtech Q3 2017 Startup Highlights

Q3 Startup Quarterly Highlights
INSURANCE TECHNOLOGY
November 2017

Quarterly insurance technology highlights
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This brief overview of the insurance technology sector provides three sections
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SectorSummary
Macro-level viewson the
state of the insurance
technology sector
LatestActivity
Major funding and exit
events from the previous
quarter
CategoryDiscovery
Deep dive into a single
insurance technology
category

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INSURANCE TECHNOLOGY
14 Categories
1,422 Companies
$19B Funding
Sector stats are continuously changing,data cumulativeas of September 2017

5
INSURANCE
TECHNOLOGY
Automotive
(147Companies)
EmployeeBenefits
(90Companies)
Enterprise/Commercial
(146Companies)
Health/Travel
(152Companies)
Data/Intelligence
(119Companies)
ConsumerManagement
(93Companies)
Education/Resources
(39Companies)
Comparison/Marketplace
(407Companies)
Infrastructure/Backend
(288Companies)
UserAcquisition
(112Companies)
Life,Home,P&C
(147Companies)
P2PInsurance
(32Companies)
Product
(41Companies)
Reinsurance
(33Companies)
The Venture Scanner researchplatform
currently tracks 1,422 insurance tech
startups with $19B in funding
The graphic above shows a random sampling of companiesin each category, data cumulativeas of September 2017

Health
Auto
Life/Home
Intelligence
Employee
Comparison
Infrastructure
Enterprise
Reinsurance
Product
Consumer Management
User Acquisition
Education
P2P Insurance
6
Innovation quadrant for insurance technology
AverageFunding
ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
AverageAge
This quadrant shows a relative segmentationof the categories with respect to oneanother, data cumulativeas of September2017
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7
VC funding into insurtech continues to slow over the last few years
Overall insurance technology funding grew at a CAGR of 36% from 2011-2016,
and 2017 is currently at 55% of 2016 funding
Insurance Technology Funding Over Time
Data cumulativeas of September 2017
0
1
2
3
4
5
6
7
2011 2012 2013 2014 2015 2016 2017
Funding($B)
Q1 Q2 Q3 Q4

8
The most recent quarter has been in line with previous Q3 funding totals
The funding in Q3 2017 was 98% of the Q3 funding average over the past 5 years
Insurance Technology Funding Over Time
0
1
2
3
4
5
6
2011 2012 2013 2014 2015 2016 2017
Funding($B)
Q1 Q2 Q3 Q4

9
Exits within the space are on a general upward trend
Quarterly insurance technology exits in 2017 are within the same range of
2016, though Q3 2017 saw 56% as many exits as Q3 2016
Insurance Technology Exit Events Over Time
0
2
4
6
8
10
12
14
2011 2012 2013 2014 2015 2016 2017
ExitEvents
Q1 Q2 Q3 Q4

11
Insurance technology funding events were mostly early stage in Q3 2017
There were 40 funding events this quarter, 60% of which occurred at the Seed stage
Recent Insurance Technology Funding Round Counts
Graphs shows only the funding rounds listed therein
-
2
4
6
8
10
12
14
16
18
20
Seed A B C D Late Stage
FundingEvents

12
Most insurtech categories saw funding this quarter
Insurance technology startups raised $397 million over the last quarter
Quarterly Insurance Technology Category Funding
Companiesare categorized by function, and therefore can exist in multiple categories. The total amount is for unique companiesonly
0
50
100
150
200
250
QuarterlyFunding($B)

13
Recent insurance technology funding events
Notable Recent Insurance Technology Funding Events
Company FundingType Amount Date
Series B $159,000,000 July 19, 2017
Series B $40,000,000 Sept 19, 2017
Series B $23,500,000 Aug 22, 2017
Series B $19,000,000 Aug 23, 2017
Series B $16,000,000 July 27, 2017
Insurtech companies raised $400M this quarter, with the top 5 events accounting
for 65% of quarterly funding

14
Recent insurance technology exit events
Notable Recent Insurance Technology Exit Events
Company Acquirer Amount Date
$4,900,000,000 July 7, 2017
$150,000,000 Sept 13, 2017
$104,000,000 Sept 7, 2017
Unknown Sept 6, 2017
Unknown Aug 16, 2017
There were 5 insurance technology exits this past quarter, all of
which have been acquisitions

Category Discovery – Health Insurance
Every quarter a newcategory will receivea deep dive,providing comparisonsto
other categories and discussingtrends
15

16
Health insurance is one of the leading categories within the insurtech sector
The health insurance category accounts for 29% of funding in the sector, 8% of total
companies, and saw mild growth last quarter
Venture Investing in Insurance Technology
Companiesare categorized by function, and therefore can exist in multiple categories. Data cumulativeas of September2017
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0
2
4
6
8
10
12
GrowthfromPreviousQuarter
Funding($B)
Previous Total Quarterly Funding Percent Growth

17
Companies within health insurance are generally better funded than their peers
Health insurance has a median funding $5M higher than the average of other
categories, and a third quartile that is $22M higher
Insurance Technology Category Funding Quartiles
Companiesare categorized by function, and therefore can exist in multiple categories. Data cumulativeas of September2017
0
10
20
30
40
50
60
FundingQuartiles($M)
First Quartile Median Third Quartile

18
Current year health insurance funding amounts are slowing
Overall health insurance funding grew at a CAGR of 116% from 2011-2016, and
2017 is currently at 36% of 2016 funding
Health Insurance Funding
-
2
4
6
8
10
12
14
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017
FundingEvents
Funding($B)
Funding Events

19
Health insurance funding amounts have trended from Series A to Series B
Health Insurance Funding Amount By Round
While recent quarters have been lower than previous highs, Series B financings
accounted for 55% of total VC funding in the past quarter
Graphs shows only the funding rounds listed therein. Data cumulativeas of September 2017
-
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017
Funding($B)
Seed A B C D Late Stage

20
Funding within health insurance is highly concentrated
Health Insurance Companies with Large Funding Amounts
Company LatestRound Amount Location
Post IPO Equity $4,750,000,000 China
Series A $935,000,000 China
Private Equity $727,500,000 New York, USA
Series C $584,000,000 San Francisco, USA
Series D $425,000,000 San Francisco, USA
The top 5 health insurance companies account for 75% of total category funding

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Insurtech Q3 2017 Startup Highlights

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