UK InsurTech Market Recorded Zero Deals Over US$100m In The First Half Of 2024
In a dramatic shift for the UK InsurTech market, H1 2024 saw no deals surpassing the US$100m mark, a stark contrast to the previous periods. In H1 2023, the market recorded US$959m across 19 deals, with US$769m coming from deals over US$100m. Similarly, H2 2023 saw US$778m across 16 deals, with US$673m attributed to transactions exceeding US$100m.
However, in H1 2024, the total deal value plummeted to US$142m across 13 deals, all under the US$100m threshold. The average deal value in H1 2024 was approximately US$10.9m, a significant decrease from the US$50.5m average in H1 2023, which reflects both the lower overall deal volume and the lack of large-scale investments.
Several factors may have contributed to this slowdown. The broader economic environment has become increasingly uncertain, with rising interest rates and inflation leading to more cautious spending and investment. Additionally, tighter funding conditions, possibly influenced by a more conservative approach from venture capital and private equity firms, could be limiting the availability of large-scale financing. This cautious sentiment may also reflect a shift towards smaller, incremental investments as companies and investors wait for clearer economic signals before making larger commitments.
Hyperexponential, a global leader in pricing decision intelligence (PDI) software, concluded the biggest funding round of the first half of the year in the European InsurTech space with a US$73m Series B funding round, backed by major US venture capitalists. Hyperexponential’s PDI platform, hx Renew, enabled insurers to leverage large and alternative datasets, develop and refine rating tools rapidly, and employ sophisticated machine learning approaches to price risk and make data-driven pricing decisions at the portfolio and individual level.
Since the company’s Series A in 2021, Hyperexponential grew sales 10x while staying profitable, serving some of the world’s largest insurers, including Aviva, HDI, and Conduit Re. This latest round of financing would support Hyperexponential’s expansion into the United States, targeting the opening of its New York office this year, and enabling increased investment in new product capabilities to serve growing client demand in adjacent insurance markets, including the SME insurance sector. The company planned to double its global team to over 200 in the next year.
