Israeli insurtech Vesttoo, which provides a technology-driven insurance risk transfer platform, has secured unicorn status for the first time after closing an US$80mn Series C funding round.
Vesttoo uses AI to connect insurance and capital markets, giving insurers the capital they need and investors the opportunity to diversify with uncorrelated, low-volatility insurance-linked assets. The latest financing, co-led by Mouro Capital and a private equity fund, values the company at exactly US$1bn. A US-based bulge-bracket investment bank, Gramercy Ventures, Black River Ventures and Hanaco Ventures also participated in the round.
It comes less than a year after London-based Mouro Capital led Vesttoo’s US$15mn Series B round and brings Vesttoo’s total funding to date to more than US$100mn. Since the last funding round, Vesttoo has further developed its AI-based marketplace, the company’s data-driven platform that facilitates the investment of new sources of capital in the insurance market.
The company has expanded rapidly in the past year, hiring new talent in London, Hong Kong, Seoul, Dubai and Tokyo, as well as growing its New York and Tel Aviv bases. It has also established a Bermuda-based collateralised insurer and hired senior talent to bolster its executive leadership team. It intends to use the capital raised to further expand its global presence, enhance its marketplace platform and widen its offering to insurers and investors. In August, Vesttoo partnered with Clear Blue to provide the P&C insurer with reinsurance capacity totalling US$1bn.
Vesttoo ‘showing resilience, strength and profitability’
Vesttoo CEO Yaniv Bertele says: “Our clients and equity partners understand the Vesttoo vision and the opportunity we provide. In a time rife with uncertainty, Vesttoo is showing resilience, financial strength and profitability, thanks to our compelling value proposition. Our AI-based marketplace is set to propel the insurance industry forward by better connecting risk to capital sourced from global investors.”
Chris Gottschalk, General Partner at Mouro Capital, continues: “Vesttoo has built a unique marketplace, proven by robust market demand and the company's impressive growth trajectory. We are thrilled to double down on our partnership with Vesttoo as they continue to scale in a market ripe for innovation.”