Funding for the insurtech sector held steady in the second-quarter of 2022, coming in at roughly $2.4 billion, the same as the overall funding figure recorded for first-quarter 2022, according to data released by CB Insights last week.
The consistent quarter-over-quarter dollar figure comes after a , with the $2.4 billion funding total representing last than half the $5.4 billion insurtech funding total tallied by CB Insights for the fourth-quarter of 2021.
The $2.4 billion second-quarter 2022 funding figure shows a similar slide when compared to insurtech funding for the same quarter last year—$5.3 billion for second-quarter 2021.
With record-breaking figures for all four quarters last year, aggregate insurtech funding came in at $16.8 billion, according to the figures in CB Insights’ report last week. That means the year-to-date funding for 2022 figure of $4.8 billion is just 29 percent of the deal value for all of last year.
The number of deals in the second quarter of 2022 was 131, representing a 17 percent drop compared to 157 for the first-quarter, and a 26 percent drop from the second quarter of 2021.
With a strong third and fourth-quarter, deal counts for full-year 2022 could catch to last year’s total of 640, but funding dollars seem more on pace to match levels achieved in 2019 and 2020 (ranging from $7.9 billion to $8.5 billion).
CB Insights published the data online in its 197-page “t,” which revealed that global fintech funding overall, including funding for banking tech, digital lending, wealth tech and capital markets tech in addition to insurtech, fell to $20.4 billion in the second quarter of 2022—down 33 percent from first-quarter 2021, and down 46 percent from second-quarter 2021. Like insurtech by itself, the number of global fintech deals fell 17 percent since first-quarter 2022, dropping to 1,225.
Both funding levels and deal counts for fintech overall dropped to their lowest quarterly amounts since fourth-quarter 2020, CB Insights reported.
So far in 2022, the average insurtech deal size is $20 million, down from the $32 million average deal size across all four quarters of 2021. The $20 million is in line with $20 million and $21 million average deal sizes that CB Insights calculated for insurtechs in 2019 and 2020.
As was evident , the number of M&A exits seem to be ahead of last year’s pace, already numbering 46 for 2022. Last year’s full-year total was 58.
CB Insights analysis also tracks the geographic distribution of insurtech deals, the percentage of early-stage vs. late-stage deals, unicorn births by quarter, IPOs and SPACs. The report also includes a list of the top 10 equity deals in the quarter, topped by the $200 million Series D funding round for Newfront Å˽ðÁ«´«Ã½Ó³», an insurtech brokerage platform.
Topics Mergers & Acquisitions InsurTech Tech Chubb
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