Timeline: The story of wefox
After raising US$650mn from its investors last month, wefox made the unprecedented move of making every one of its employees, a shareholder.
The company has now reached a post-money valuation of $3bn and wefox has emerged as a global-leading digital insurer focused on personal insurance products, such as household insurance, motor insurance, and personal liability insurance.
We track the highs - and more highs, of this dynamic and disruptive insurtech that is taking Europe by storm
2014 - FinanceFox is launched
Fresh from his victories with Groupon the three other successful fintech startups, Julian Teicke pioneers FinanceFox, an app that enables users to manage their existing insurance policies from one mobile platform.
July 2015 - In the money
FinanceFox completes an angel funding round with an undisclosed amount of funding from EMPAUA GmbH, Dario Fazlic, Julian Teicke, and Amir Suissa.
January - September 2016 - Funding spree
In just eight months, FinanceFox raises $28m from its investors in two rounds let by Salesforce Ventures, Anglelist, IDinvest Seedcamp and Speedinvest. The boost enables FinaceFox to expand its offerings and the company goes on a massive hiring drive.
2017 - Rebrand and insurtech status
With its own insurance offering now available, FinanceFox is sent out to pasture and the insurtech rebrands as wefox following the acquisition of ONE Insurance for an undisclosed amount of money.
2019 - Expansion plans
On March 6, 2019, wefox completes its series B funding round with $125mn in funding from Mubadala Ventures, Salesforce Ventures, H14, Goldman Sachs, and CreditEase Fintech Investment Fund.
2021 - The big time
Now the largest insurtech in Europe, wefox raises $650m in the largest investment drive for an insurtech globally.
The direction of the company continues to take a technology-led approach to its expansion, with customer centricity at the centre of its strategy.
Following the funding round and IPO, Julian Teicke also announces that every wefox employee is now a shareholder in the company.
CB Insights: US Insurtechs Are Competing In A Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.