8 investors weigh in on the state of insurtech in Q3 2022

Welcome to TechCrunch+ Friday

The demand for some services can be so high, it can insulate their providers against the vagaries of the market. During an economic downturn, consumers don’t cut back on pet food or toilet paper. Similarly, everyone needs insurance.

Between 2016 and 2022, insurtech startups received around $43 billion in funding, and despite the downturn, most of the investors that reporter Anna Heim recently surveyed said they’re still positive about the sector’s prospects:

• Martha Notaras, general partner, Brewer Lane Ventures
• David Wechsler, principal, OMERS Ventures
• Stephen Brittain and Rob Lumley, directors and co-founders, Insurtech Gateway
• Florian Graillot, founding partner, Astorya.vc
• Clarisse Lam, associate, New Alpha Asset Management
• Hélène Falchier, partner, Portage Ventures
• Adam Blumencranz, partner, Distributed Ventures

“We are simply seeing a reality check happen,” said Wechsler. “Unfortunately, there are many companies that should not have raised as much as they did, or perhaps don’t have sustainable business models. These companies will struggle to survive.”

Their responses contain valuable insights for early stage founders still in fundraising mode, as well as those who are hoping to find an exit in this down market.

“From an M&A perspective, it’s a matter of price versus positioning,” said Graillot. “If you are solving a real pain point as an enterprise software company, tech providers or insurers might be interested in acquiring you.”

Thanks very much for reading TC+ this week. Have a great weekend.

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

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