US$73m Raised for PDI Software Leader hyperexponential
Leading innovator in insurance technology hyperexponential was founded in 2017 by CEO Amrit Santhirasenan and Michael Johnson, who saw the need for a scalable way to turn small, sparse, or fragmented data into new insights that drive smarter decisions.
The company has created the world’s first pricing decision intelligence platform for insurers. hx Renew reimagines the flow from data to decision, creating a continuous feedback loop to strengthen the data assets, insights, and decisions of insurers and improve profits.
“The insurance industry is at the forefront of a rapidly changing world and must find ways to understand and respond to that change in risk profile,” states Santhirasenan.
“We’ve focused on building a capital-efficient, independent business that was both high-growth and sustainable from the outset. Although we have more cash-on-hand than we’ve raised, we wanted to bring on new expertise in our target markets as we continue our growth into new verticals and geographies. We are delighted to have attracted a world-class set of investors who bring an unparalleled combination of experience, expertise, and support to hyperexponential in the next phase of our expansion.”
Headquartered in London and with a presence in Poland, hyperexponential serves insurance and reinsurance companies in the multi-trillion-dollar global property-casualty insurance industry. The company is seeing industry leading companies shifting their focus to next-generation risk pricing methods to augment or supplant traditional pricing models in response to modern threats including climate change, geopolitical unrest, and cyberterrorism.
"I believe hyperexponential is among the most compelling new entrants in insurtech I have seen in over twenty years of serving the P&C insurance industry," said Marcus Ryu, Director at hyperexponential and Partner at Battery Ventures.
"As former software engineers and actuaries with top tier commercial insurers, Amrit and Michael each bring a deep practitioner's grasp of the new requirements for risk pricing. hyperexponential is rapidly becoming an indispensable tool for the insurance industry to thrive in a future that is not reliably the same as the past."
Financing insurance technology
As a global leader in pricing decision intelligence (PDI) software, hyperexponential has completed the US$73m Series B funding round led by Battery Ventures. Having invested in global technology companies since 1983, Battery Ventures backs founders and teams at all stages of growth, from startups to established market leaders.
Existing Series A investor Highland Europe has also increased its holding, and Andreessen Horowitz (a16z) is involved in the round.
"Pricing risk is the most critical function of an insurance carrier. Yet, most actuaries still work with cumbersome Excel models and are constrained by legacy software that limits their ability to dynamically incorporate new data and more sophisticated analytical techniques,” says Angela Strange, General Partner at a16z.
“Amrit and Michael’s actuarial experience helped them design the system the insurance market needed, and hyperexponential has achieved incredible traction with technical users and executives alike as they’ve completed multiple industry-leading deliveries around the world. hx Renew is rapidly becoming the operating system for pricing risk in the global insurance market. We are thrilled to join forces with the hyperexponential team as they launch in the US and expand beyond specialty lines".
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