Avanta Ventures launches US$225mn insurtech-focused fund

Avanta Ventures has launched a US$225mn early-stage fund aimed primarily at insurtechs, following the success of its original US$75mn fund launched in 2017

Investment vehicle Avanta Ventures has launched a US$225mn early-stage fund aimed primarily at insurtechs, as it seeks to increase its backing for the sector.

California-based Avanta, which is the venture capital arm of CSAA Insurance Group, invests between US$1mn and US$10mn in early-stage insurtechs at seed, Series A and Series B stage. It then reserves significant capital for follow-on investment to continue to support its portfolio.

It has already committed US$75mn to an initial insurtech-focused fund, which launched in 2017, meaning its total assets under management will now amount to more than US$300mn. It has previously invested in the likes of Cowbell, which uses AI-powered underwriting to deliver smarter cyber insurance; Kin, an insurtech startup attempting to simplify homeowners’ insurance; and RapidSOS, an emergency platform that connects IoT devices to first responders and 911 dispatchers.

Avanta after ‘aspiring startups with differentiated products’

Sanjiv Parikh, Managing Partner of Avanta Ventures, says: “We’re looking to connect with new and aspiring companies that have built a differentiated product. We’re ready to talk with promising startups where we can add value and help them progress to their next stages, driving growth for the portfolio company and for CSAA.”

Debbie Brackeen, Chief Strategy and Innovation Officer for CSAA Insurance Group, adds: “When we founded Avanta Ventures in 2017, I envisioned a venture arm that would leverage the external startup ecosystem to amplify CSAA's innovation strategy and capabilities. Avanta Ventures has allowed us to invest in companies where we add unique value via partnership engagement with CSAA’s product, operations, marketing and distribution units.”

In addition to its venture fund investments, Avanta Ventures runs an accelerator called Avanta Studios. It works with pre-seed companies to help them achieve key milestones, such as product market fit, customer and partner engagement, and initial institutional venture financing. Numerous Avanta Studios participants have gone on to raise venture capital, including Delos Insurance, which received seed investment from Avanta Ventures.

Share

Featured Articles

Insurtech unicorn bolttech takes on extra $50m in funding

Insurtech unicorn bolttech has taken on an extra US$50m in funding from Leapfrog Investments as part of the insurtech's Series B extension

Allianz wants to 'lead by example' with new net-zero targets

Allianz has said it wants to "lead by example" after announcing ambitious new targets to make its investment and underwriting portfolios net zero

Insurtech pricing solution Akur8 seals $25m in fresh funding

Akur8, whose insurtech solution is used by actuaries to build pricing models across all insurance lines, has received backing from Guidewire and FinTLV

Beazley launches tornado parametric insurance using NWS data

Insurtech

Alex Dalyac: Founding AI-based insurtech Tractable

Technology & AI

Saudi Arabia: 'solid' framework to guide insurtech sector

Insurtech