PitchBook News - Insurtech startups challenge incumbents

Read online | Don't want to receive these emails? Manage your subscription.

PitchBook

Log in

The Daily Pitch: VC

May 19, 2021

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

Today's Top Stories

Insurtech startups compete head-on with traditional carriers

The pandemic accelerated the digital transformation of most insurers as many had to interact with customers remotely, underwrite assets without physical inspection or adjust claims virtually. Insurtech startups also found an opportunity to enter new markets and attract underserved customers—increasingly threatening slower incumbents.

Our latest installment of Emerging Tech Research explores the major trends that shaped this space in the first quarter of 2021, including optimism around embedded insurance products and a record exit value. Among the takeaways:

Insurtech startups raised $2.2 billion across 110 deals globally, with commercial lines attracting about one-third of total capital invested in the vertical.

Late-stage valuations jumped during the quarter without significant changes in median deal sizes, potentially indicating that late-stage founders are decreasing equity share offerings.

Embedded insurance is expected to be the fastest-growing distribution channel in the decade to come.

read the preview

Share:

Klaviyo's valuation soars above $9B

Klaviyo has raised $320 million at a valuation north of $9 billion, more than double what it was reportedly worth after a $200 million round last November.

The deal makes Boston-based Klaviyo the most valuable VC-backed marketing tech company in the US, according to PitchBook data. It has now raised over $675 million in total funding.

Sands Capital led the Series D, with participation from Morgan Stanley's Counterpoint Global, Whale Rock Capital Management, ClearBridge Investments, Lone Pine Capital, Owl Rock Capital, Glynn Capital, Accel and Summit Partners.

Klaviyo's marketing automation software is used by online retailers to manage customer data and communicate over text messaging, social media and email. Its tech integrates with Shopify, Stripe and other ecommerce platforms.

Share:

A message from Plante Moran

Ensure maximum ROI upon exit with post-acquisition value creation strategies

While private equity has continually demonstrated its ability to thrive amid periods of economic instability, with today's ever-changing economic conditions, it's more vital than ever to create a solid integration and execution plan to build portfolio value. While there's no single winning formula for success, consider near-term initiatives and longer-term strategic opportunities for value creation that drive increased revenue, margin improvement and capital efficiency.

Get the most out of your investment after the deal is done and ensure the best ROI upon exit by:

Using performance-based equity incentives
Addressing accounting on day one
Optimizing tax planning
Upgrading the finance function
Aligning technology
Prioritizing operational improvements

Access practical advice to drive maximum value. Download the guidebook.

Share:

Back Market hits $3.2B valuation, doubles down in US

(Xuanyu Han/Getty Images)

Back Market, the operator of a marketplace for refurbished electronics, has raised $335 million in a funding round, bringing its valuation to $3.2 billion.

General Atlantic led the round, with support from new investor Generation Investment Management and existing backers Goldman Sachs Growth Equity, Aglaé Ventures, Eurazeo and Daphni. The company was valued at €727 million (around $889 million) in May 2020.

The funds will be used for Back Market's international expansion, with a focus on the US. Based in France, the company operates in 13 markets across Europe, Asia and North America and has nearly 5 million customers.

Back Market's round comes amid a boom in funding for European startups connecting shoppers with secondhand goods. Lithuanian online used clothes retailer Vinted secured €250 million earlier this month, and Spanish peer Wallapop received €157 million in February.

Share:

Recommended Reads

An interview with Darktrace CEO Poppy Gustafsson on fighting hackers during the cybercrime wave. [Time]

For over 100 years, the National Park Service has worked to preserve the natural heritage of the US. But the increasing threat of climate change is forcing the agency to make tough decisions about what to save. [The New York Times]

A rare profile of longtime Sequoia partner Alfred Lin, who was at the forefront of the firm's blockbuster year for portfolio company IPOs. [Fortune]

Since yesterday, the PitchBook Platform added:

13

VC valuations

1693

People

380

Companies

27

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2017 Vintage European PE Funds
	VC Deals
	Beta Technologies flies off with $368M
	Extend picks up $260M in SoftBank-led round
	Vise banks $65M Series C for investment management
	Plant-based chicken producer grabs $40M Series B
	Artificial lands $21.5M
	Exits & IPOs
	Flywire sets range for Nasdaq debut
	Siemens set to snap up Supplyframe for $700M

The Daily Benchmark

2017 Vintage European PE Funds

Median IRR

15.39%

Top Quartile IRR Hurdle Rate

24.34%

1.15x

Median TVPI

Select top performers

HgCapital Mercury 2

Summit Partners Europe Growth Equity Fund II

HgCapital Genesis 8

*IRR: net of fees

28 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Beta Technologies flies off with $368M

Electric aircraft maker Beta Technologies has raised $368 million in a financing round led by Fidelity Management & Research, with Amazon's Climate Pledge Fund and RedBird Capital Partners also participating. The Vermont-based startup received airworthiness approval from the US Air Force in April and is targeting logistics, medical, defense and passenger applications. It expects to begin delivery of its aircraft, dubbed Alia, in 2024.

View details

View 7 competitors »

Extend picks up $260M in SoftBank-led round

Insurtech startup Extend has raised $260 million in Series C funding at a valuation of more than $1.6 billion. SoftBank led the round through its Vision Fund 2 and was joined by Meritech Capital Partners, PayPal Ventures, GreatPoint Ventures, Nationwide, Tomales Bay Capital, Launchpad Capital, 10X Capital and 40North. San Francisco-based Extend offers extended warranties and other product protection plans for merchants like Peloton, iRobot and Backcountry.

View round

View similar company »

Vise banks $65M Series C for investment management

Vise has raised $65 million in a round led by Ribbit Capital, with support from existing investors including Sequoia. The funding values the New York-based company at more than $1 billion. Vise provides an AI-based investment management platform that helps financial advisers create personalized portfolios and automate processes; it raised a $45 million Series B in December.

View round

View similar company »

Plant-based chicken producer grabs $40M Series B

Los Angeles-based Daring has raised $40 million to scale its offerings of plant-based chicken. The Series B was led by D1 Capital Partners, with participation from rapper Drake as well as Maveron and Palm Tree Crew. Daring was valued at $28 million last year, according to PitchBook data.

View round

View 2 competitors »

Artificial lands $21.5M

Artificial has raised a $21.5 million Series A led by M12, with participation from Playground Global and AME Cloud Ventures. The Palo Alto-based company offers software to automate workflows in life sciences labs.

View round

View similar company »

Exits & IPOs

Flywire sets range for Nasdaq debut

Flywire, a provider of payments and receivables software for the education, healthcare, tech and travel sectors, has established plans to offer 8.7 million shares for between $22 and $24 apiece. At the top of that range, the Boston-based company would raise nearly $209 million and be valued at around $2.4 billion. Since its founding in 2011, Flywire has raised more than $320 in private funding from investors including Spark Capital, F-Prime Capital and Bain Capital Ventures, according to PitchBook data.

View details

View 38 competitors »

Siemens set to snap up Supplyframe for $700M

Siemens has agreed to acquire Supplyframe, the venture-backed provider of a marketplace for the global electronics value chain, for $700 million. Founded in 2003, the Southern California-based company has raised funding from investors including Clearstone, TriplePoint Capital and US Venture Partners. The deal is expected to close in Q4.

View details

View 1 competitors »