London-based insurance industry startup hyperexponential has today announced the close of a $73 million Series B funding round. The investment is aimed at supporting the company’s US market entry.
The round was led by Battery Ventures and saw Andreessen Horowitz (a16z) participating alongside existing Series A investor Highland Europe.
Founded in 2017, hyperexponential offers mathematical modeling software for the commercial insurance sector. The company’s client roster includes insurers such as Aviva, HDI, and Conduit Re.
While all businesses strive to stay one step ahead of the game, perhaps no other industry has the mandate of foreseeing the future than that of insurance. Not only to serve its clients best, but also, being able to put pinpoint accuracy to risk assessment is what drives P&L statements.
For insurers, today’s risk assessment includes factors such as climate change, geopolitical unrest, and cyberterrorism. Traditional pricing models are either completely obsolete or sorely in need of updates or augmentation. Hyperexponential serves both purposes.
According to hyperexponential, since its $18 million Series A round in min-2021, the startup has grown sales by a factor of 10x and remains profitable.
“We’ve focused on building a capital-efficient, independent business that was both high-growth and sustainable from the outset. Although we have more cash-on-hand than we’ve raised, we wanted to bring on new expertise in our target markets as we continue our growth into new verticals and geographies,” said hyperexponential co-founder and CEO Amrit Santhirasenan.
As further confirmation of hyperexponential’s offer, lead investor Battery Ventures partner Marcus Ryu is co-founder and former CEO of NYSE-listed insurtech Guidewire Software.
"I believe hyperexponential is among the most compelling new entrants in insurtech I have seen in over twenty years of serving the P&C insurance industry," said Ryu.
Lead image via hyperexponential.