Despite messy IPOs, there's good reason to be optimistic about insurtech startups

Mai 19, às 16:59


3 min de leitura


0 leituras

It wasn’t a surprise to learn that former scooter unicorn Bird is pursuing a reverse stock split. The company isn’t treading new ground here — it isn’t the only tech firm that has IPO’d in the past couple of...
Despite messy IPOs, there's good reason to be optimistic about insurtech startups

It wasn’t a surprise to learn that former scooter unicorn Bird is pursuing a reverse stock split. The company isn’t treading new ground here — it isn’t the only tech firm that has IPO’d in the past couple of years to consolidate its equity in hopes of keeping its share price above $1 to avoid a delisting. Root Insurance did the same thing last August. As did Hippo, another former insurtech startup.

Root and Hippo were very much part of the trend that saw several consumer-facing insurance startups going public during the last venture boom, as were MetroMile and Lemonade. Since their IPOs, most of these companies’ track records on the public market have been suboptimal, to put it mildly.

The Exchange explores startups, markets and money.

Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.

Valued at around $6.8 billion in its IPO, Root is today worth a mere $67.2 million, per Yahoo Finance. Hippo and MetroMile went the SPAC route, and both saw their values decline precipitously afterwards: Hippo is worth $440 million today compared to its post-combination market cap of more than $5 billion, and MetroMile wound up selling to Lemonade for less than $145 million worth of stock in its new parent company.

Not all of this cohort has done poorly, though. Lemonade went public at $29 per share, and its shares are trading at just over $16 today. It’s by far the best performer of the group.

But insurtech has persisted, stubbornly showing a few signs of life despite the carnage. Earlier this year, Duck Creek, which makes enterprise software for insurers, was taken private for $2.6 billion by private equity firm Vista Equity Partners. And, just a few months ago, TechCrunch+ spoke to a half-dozen investors in the insurtech space who shared more than a few thoughts on where tech could profitably intersect with the larger insurance market.

After parsing recent venture data, re-examining venture interest in light of new market conditions, and a number of recent funding rounds, we’ve come to the conclusion that the market for insurance-focused startups is actually not moribund. It’s simply smaller and, perhaps, more intelligently focused than before. Let’s examine.

There’s some bulls in this house

First, we should clarify that the investors we talked to haven’t lost interest in insurtech startups, even when this is only one of several categories their funds invest in. “We are still bullish on insurtech and we have been active in 2023,” said Hélène Falchier, a partner at fintech-focused fund Portage, for example.

Yet, the sector hasn’t been spared the devastation caused by the broader downturn. “It’s been a turbulent few months for all tech sectors, including insurtech,” said Stephen Brittain, director and co-founder of Insurtech Gateway.

Continue lendo


How to Create an Evil Twin Access Point; Step-by-Step Guide
Step-by-Step Guide: Creating an Evil Twin An Evil Twin Access Point is a malicious wireless access point that is set up to mimic a legitimate one. It can be used to intercept sensitive information such as...

Jun 3, às 23:41


Atomic Design: A Methodology for Building Design Systems
Introduction Atomic Design is a methodology for creating design systems that recognizes the need to develop thoughtful design systems, rather than creating simple collections of web pages. In this approach,...

Jun 3, às 23:04

Hacker News

Thought Cloning: Learning to Think while Acting by Imitating Human Thinking
Language is often considered a key aspect of human thinking, providing us with exceptional abilities to generalize, explore, plan, replan, and adapt to new situations. However, Reinforcement...

Jun 3, às 23:00

AI | Techcrunch

YouTube rolls back its rules against election misinformation
YouTube was the slowest major platform to disallow misinformation during the 2020 U.S. election and almost three years later, the company will toss that policy out altogether. The company announced Friday...

Jun 3, às 22:57


Techinical Debt; what is it?
Imagine you're building a house. You want to finish it quickly, so you take some shortcuts along the way. You use low-quality materials, skip some important steps, and don't do thorough testing. The house is...

Jun 3, às 22:45

Marktechpost AI Research News

Researchers From UT Austin and UC Berkeley Introduce Ambient Diffusion: An AI Framework To Train/Finetune Diffusion Models Given Only Corrupted Data As Input
For learning high-dimensional distributions and resolving inverse problems, generative diffusion models are emerging as flexible and potent frameworks. Text conditional foundation models like Dalle-2, Latent...

Jun 3, às 22:40


Exploring Tech Paths: Discovering Exciting Possibilities
Table of Contents: Introduction Understanding the Diverse Fields in Tech The Search for the Right Tech Path A Case Scenario: Linda's Journey Actionable Advice for Exploring Tech Paths Success Story: Jane's...

Jun 3, às 20:55

Código Fonte

Ele usou o GPT-4 para criar uma nova linguagem de programação – Código Fonte
É inegável que os largos modelos de linguagem (LLMs), que são a base dos atuais algoritmos de Inteligência Artificial generativa, chegaram para revolucionar, nem que seja somente o ano de 2023, até a...

Jun 3, às 20:51


☸️ How to deploy a cost-efficient AWS/EKS Kubernetes cluster using Terraform in 2023
Introduction Variables Providers and locals The enclosing VPC network The actual Kubernetes cluster Docker registries S3 application bucket Outputs Conclusion Cover image generated locally by DiffusionBee...

Jun 3, às 20:18

AI | Techcrunch

Gig workers get paid, Fidelity slashes Reddit's valuation and AI conquers Minecraft
Hey, folks, welcome to Week in Review (WiR), TechCrunch’s regular newsletter that recaps the week in tech. Hope the summer’s treating y’all well — it’s a balmy 90 degrees here in NYC! — and that some...

Jun 3, às 20:15