Insurers have multiplied by 20 their investments in start-ups in three years

by bold-lichterman

  • In 2016, insurers are expected to participate in nearly 80 start-up investment operations; that’s 20 times more than three years ago.
  • 72% of investments made by insurers since 2012 have taken place in the United States, compared to 3% in France.
  • In 2016, 23% of operations should be seed investments.

Corporate investment is doing particularly well with insurers. Globally, the number of fundraisers that include an insurer among investors has indeed multiplied by 20 between 2013 and 2016, according to data CB Insights. At the end of the year, nearly 80 investments should include the participation of an insurer in a start-up.

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France well positioned in Europe

Unsurprisingly, 72% of the investments identified by CB Insights since 2012 have taken place in the United States, 12% in China and 6% in the United Kingdom (leading European countries). France comes in 4th place among the countries studied by CB Insights (tied with Germany), with 3% of transactions.

In the French investment landscape, the fund MAIF Future stands out, with 3 million euros invested in the capital of Yescapa or even 1 million euros invested in Samboat. Since the start of the year, the fund specializing in the collaborative economy, digital and innovation in the broad sense, has thus invested alone in no less than 8 tech start-ups, according to data. Frenchweb.

Almost a quarter of seed investment

Over the past two years, insurers have significantly changed their investment policy, according to the analysis of CB Insights.

In 2014, more than half of their investments thus concerned Series A or B; the seed investment concerned 7% of operations. In 2016, seed funding now accounts for nearly a quarter of operations (23%), and the share of Series A and B operations increased slightly, to represent 59% of investments. The operations in Series C, but especially in Series D, have seen their relative share almost divided by 3.

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Investments in IoT and AssurTech

Finally, two major sectors of activity seem to attract insurers ready to invest in start-up capital: the Internet of Things, and insurance of course. The recent fundraisers announced in France suggest that the collaborative economy is also an attractive market for these new kind of investors.

In the end, this contributes to a dynamic favorable to corporate investment. French non-financial companies, for example, multiplied their investments in risk capital by 9 between 2008 and 2013, according to the study Deloitte Corporate Private Equity dated last February.

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