Insurance Risk Transfer Platform Vesttoo Valued at $1 Billion After Latest Funding Round
Vesttoo Ltd. said on Tuesday its valuation has more than tripled to $1 billion after the insurance risk transfer platform secured $80 million in late-stage funding at a difficult time for private companies to raise capital.
Wall Street giant Goldman Sachs also participated, a person familiar with the matter told Reuters.
Rising interest rates and geopolitical turmoil have stoked fears of a recession, making it difficult for startups to secure funding as a global market rout turns investors cautious.
That has wiped billions off the valuations of high-growth startups, but the insurance sector .SPXIN has outperformed so far this year, posting marginal gains compared to the roughly 20% decline in the benchmark S&P 500 Index .SPX.
Vesttoo said it intends to use the new capital to expand its footprint globally and widen the offerings of its marketplace platform, which connects insurers and investors.
“In a time rife with uncertainty, Vesttoo is showing resilience, financial strength and profitability,” said Chief Executive Yaniv Bertele in a statement.
Late last year, the firm had raised $15 million in a series B round led by Mouro Capital with participation from Japan’s MS&AD Ventures, boosting its valuation to $300 million.
Vesttoo offers a platform for insurance companies to transfer their risk to capital market investors. It chiefly focuses on non-catastrophe life and property and casualty (P/C) insurance.
The company said it had increased the scope of its international operations in the past year, hiring employees in London, Hong Kong, Seoul, Dubai and Tokyo, as well as growing its New York and Tel Aviv bases.
(Reporting by Manya Saini in Bengaluru and Carolyn Cohn in London; editing by Devika Syamnath)
- Hippo’s First Connect Partners With Root Insurance on Quote and Bind Process
- Former NFL Player’s $43.5 Million Score in Medical Malpractice Case Upheld
- New York City’s Biggest Taxi Insurer Is Insolvent, Risking Transit Meltdown
- Risks Too Big for Insurers Just Fed a $200 Billion Market Boom in Captives