Insurtech Funding Analysis by Category

Last quarter we discovered that the insurance technology sector is showing early signs of maturation. This quarter we are delving deeper on our insurtech report and research platform to examine funding by category. From this analysis, we conclude that the Insurance Comparison and Health Insurance categories lead the sector in category funding.

This conclusion comes from three key observations:

  • Insurance Comparison leads the sector in Q2 funding
  • Health Insurance dominates all-time insurtech category funding
  • Insurance Comparison has the highest funding growth percentage

We’ll explain these key observations with some graphics and discussions below.

Insurance Comparison Leads Insurtech in Q2 Funding

To start off, let’s study the insurance technology funding amounts by category in Q2.

Insurance Technology Current Quarter Category Funding
Insurance Technology Current Quarter Category Funding

The above graphic shows that Insurance Comparison leads the sector in Q2 2018 funding. Insurance Comparison raised the most funding last quarter with $323M. Health Insurance came in second with $294M.

So we’ve witnessed how different insurtech categories stack up in their Q2 funding. But how do these categories’ funding compare with each other historically? Let’s investigate that in the next section.

Health Insurance Dominates All-Time Funding; Insurance Comparison Grew the Fastest

The graph below summarizes the all-time funding in insurtech categories as well as their funding growth percentages.

Insurance Technology Total Category Funding
Insurance Technology Total Category Funding

Without a doubt, the bar graph demonstrates that Health Insurance leads in all-time funding with $11B. It’s also notable that its funding is 130% more than the next category–Life, Home, P&C Insurance–which has over $8B.

The line graph in the above graphic indicates that Insurance Comparison funding grew the fastest quarter over quarter with a growth percentage of 18%.

Conclusion: Insurance Comparison and Health Insurance Are At Forefront of Insurtech Funding

In summary, we have analyzed the insurtech funding amounts in different insurtech categories. Insurance Comparison leads in last quarter’s funding. We also observed that Health Insurance dominates the sector in all-time funding, while Insurance Comparison funding had the highest growth percentage in Q2. It’ll be interesting to see if any other insurtech categories will catch up and take the lead in the rest of 2018.

To learn more about our complete insurance technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Mid-Year Internet of Things Exits Analysis

We’ve previously discovered that exits within the internet of things (IoT) sector are showing strong growth over time. Now armed with the data through June 2018, we’re conducting a mid-year status check on the total IoT exits by year.

After taking a deeper dive on our IoT report and research platform, we observe that if the current trend holds, IoT exit activity in 2018 will be lower than in 2017.

2018 Mid-Year IoT Exit Activity Lower Than 2017 But Higher Than 2016

Let’s take a closer look at the number of IoT exit events by year.

Internet of Things Exits by Quarter
Internet of Things Exits by Quarter

The above graphic shows 26 exits in the first half of 2018. This is 43% of the 2017 total. Comparing Q1-Q2 exits only, 2018 is down slightly from 2017 but running ahead of 2016.

For the past three years, Q3 and Q4 accounted for 57% of total exit events on average. If that trend holds, 2018 will have around 60 exit events. That would be lower than the number of exits in 2017 but higher than that in 2016.

Conclusion: 2018 Trending To Be The Second Highest Year For IoT Exit Activity

In summary, we have performed a mid-year status check on IoT total exits by year. We predict that the sector’s exit activity in 2018 will be lower than 2017 but higher than 2016. It’ll be interesting to see if the IoT exit activity by the end of 2018 turns out to align with our prediction.

To learn more about our complete internet of things report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Internet of Things Startup Highlights  – Q2 2018

Here is our Q2 2018 summary report on the internet of things startup sector. The following report includes a sector overview and recent activity.

To learn more about our complete internet of things report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Virtual Reality Sector Overview – Q1 2018

The virtual reality (VR) sector has seen a lot of buzz in the news lately. Its applications can be observed in all industries from health to entertainment to real estate. In addition, we’ve analyzed that its funding and exit momentum has experienced significant growth in recent years.

We will now take a closer look at the different components of the VR sector and how they make up this startup ecosystem. We have classified the companies into 13 categories. This blog post will illustrate what these categories are and which categories have the most companies. We will also compare the categories with one another in terms of their funding and maturity.

Virtual Environment Content Is the Largest VR Category

Let’s start off by looking at the Sector Map for the VR sector. We have classified 750 virtual reality startups into 13 categories that have raised $10 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

virtual-reality-sector-map
Virtual Reality Sector Map

We see that Virtual Environment Content is the largest category with 286 companies. These companies create or present computer-generated spatial simulations for the user to experience. Such environments include virtual reality video games, learning platforms, and socializing platforms. Some example companies are VRstudios, Survios, VREAL, and Reality Reflection.

We have seen what the different categories making up this sector are and the number of companies in each. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

The Pioneers Quadrant Has the Most Virtual Reality Categories

Our Innovation Quadrant divides the VR categories into four different quadrants.

virtual-reality-innovation-quadrant
Virtual Reality Innovation Quadrant

We see that the Pioneers quadrant has the most virtual reality categories with 5. The Pioneer categories are in the earlier stages of funding and maturity. The Established quadrant has four categories that have reached maturity with less financing. The Heavyweights quadrant also contains four categories. These categories have reached maturity with significant financing.

We’ve analyzed the virtual reality categories and their relative stages of innovation. Let’s now look at how they stack up against one another in terms of their total funding versus company counts.

Augmented Reality Startups Have the Most Funding

The graph below shows the total amount of venture funding and company count in each category.

Virtual Reality Category Funding and Companies
Virtual Reality Category Funding and Companies

As the above graphic implies, the Augmented Reality category leads in funding with $3.5 billion. Its funding is almost 171% of the funding of the next category, Virtual Reality Consumption Hardware. Most notably, about 74% of Augmented Reality funding ($2.6 billion) comes from two companies: Magic Leap and Niantic.

Augmented Reality companies create products that superimpose a computer-generated environment on a user’s view of the real world. Their products include augmented reality headsets, augmented reality social games, and augmented reality surgery simulations. Some example companies in this category are Lumus, WayRay, Meta, and Blue Vision Labs.

Conclusion: Virtual Environment Content and Augmented Reality Lead the Sector

The analysis above highlights that the Virtual Environment Content category leads the sector in total companies, and the Augmented Reality category leads in total funding. It’ll be interesting to see how the virtual reality landscape will change and develop throughout the rest of 2018.

To learn more about our complete Virtual Reality report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Energy Technology Startup Highlights  – Q1 2018

Here is our Q1 2018 summary report on the energy technology startup sector. The following report includes an overview, recent activity, and a category deep dive.

To learn more about our complete energy technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Insurance Technology Sector Overview – Q1 2018

The insurance technology sector has seen an abundance of activity over the past few years. As we previously analyzed, insurtech funding has shown early signs of maturation and its exit events have seen robust growth.

We will now do a deeper dive of the different components of insurance technology and how they make up this startup ecosystem. We have classified the companies into 14 categories. This blog post will illustrate what these categories are and which categories have the most companies. We will also look at how these categories compare with one another in terms of their funding and maturity.

Insurance Marketplace Is the Largest Insurance Technology Category

Let’s start off by looking at the Sector Map for the insurance technology sector. As of March 2018, we have classified 1503 insurance technology startups into 14 categories that have raised $22 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

insurance-technology-sector-map
Insurance Technology Sector Map

We see that Insurance Comparison/Marketplace is the largest category with 420 companies. These companies enable consumers to compare different insurance providers, or buy insurance of any kind (car to home to health). Some example companies are Goji, Policygenius, CoverHound, and Coverfox.

We have seen what the different categories making up this sector are and the number of companies in each. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

Reinsurance Is the Heavyweight Category in Insurance Technology

Our Innovation Quadrant divides the insurance technology categories into four different quadrants.

Insurance Technology Innovation Quadrant
Insurance Technology Innovation Quadrant

We see that the Pioneers quadrant has the most insurance technology categories with 10. The Pioneer categories are in the earlier stages of funding and maturity. The Disruptors quadrant includes Health Insurance, Auto Insurance, and Life, Home, P&C Insurance. These three categories have acquired significant financings at a young age. The Heavyweights quadrant contains the Reinsurance category. This category has reached maturity with significant financing. Reinsurance companies provide insurance products to other insurance companies to help them hedge their bets and streamline their costs. Some example companies are AnalyzeRe, PlaceRe, PeakRe, and EazyRe.

We’ve seen the insurance technology categories and their relative stages of innovation. Let’s now look at how they stack up against one another in terms of their total funding versus company counts.

Health Insurance Startups Have the Most Funding

The graph below shows the total amount of venture funding and company count in each category.

insurance-technology-total-funding-and-companies
Insurance Technology Total Funding and Company Count

As noted earlier, Health Insurance, Auto Insurance, and Life, Home, P&C Insurance have the highest average funding per company. The above graphic highlights that these three categories also have the highest total funding in insurtech. Among the three categories, Health Insurance leads the sector with over $10 billion in total funding.

Health Insurance contains companies that offer health-related insurance products for consumers and businesses. Some of the best-funded companies in this category are Oscar Health ($893M), Zenefits ($584M), and Clover Health ($425M). It’s also noteworthy that the funding in Health Insurance is 28% higher than the funding in the next category, Life, Home, P&C Insurance.

Conclusion: Insurance Marketplace and Health Insurance Categories Lead Insurtech

From the above analysis, we can see that the Insurance Marketplace category leads the sector in total companies. The Health Insurance category leads the sector in total funding. On the other hand, the Reinsurance category stands out as the Heavyweight category in our Innovation Quadrant. It has reached maturity with significant average funding per company versus other categories. It’ll be interesting to see how the insurance technology landscape will change and develop throughout the rest of 2018.

To learn more about our complete insurance technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Virtual Reality Startup Highlights – Q1 2018

Here is our Q1 2018 summary report on the virtual reality startup sector. The following report includes an overview, recent activity, and a category deep dive.

To learn more about our complete virtual reality report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.