Insurtechs known as unicorns/outliers that have received more than $100M in funding (unicorns) have increased fivefold since 2017. However, Insurtech startups have experienced a steady decrease in the same period, possibly signaling a shrinking innovation space.
Outliers or “Unicorns” has increased fivefold since 2017
In the sample used to make this report, Insurtech companies have been categorized into 3 main categories: startups, scale ups and outliers or unicorns.
When we talk about startups, we refer to Insurtechs founded less than 3 years ago and with a maximum total funding amount received of $5M. Scale ups, represent those Insurtechs that have received a total funding amount between $5M to $ 100M, a maximum of 2 years between funding rounds and a Crunch Base ranking in the 25%-30% band.
Finally, outliers or unicorns are those Insurtechs that have received more than $100M of funding and have a valuation exceeding $1B. It is interesting to note that outliers, which represent just 10% of Insurtechs in the sample, concentrate 75% of 2021 funding. It is also worth highlighting that startups, 45% of the sample, represent just 2% of the total funding amount.
The top unicorns during 2021 by cluster
In order to analyze the most relevant companies from 2021 (outliers or unicorns), these have been grouped in 6 clusters according to the main attributes they all share.
These clusters are: Seamless Distribution, Indian Giants, Simple Life & Health, Fast & Easy Mobility, New Horizons and Tech-fueled Innovation.
The investors behind the 2021 unicorns
The previous graph shows the investors behind the most relevant outliers “unicorns” from 2021.