PitchBook reports the market ended 2023 on a low note.
“In Q4 2023, insurtech startups generated $1.3 billion across 102 deals, representing declines of 22.3% and 15.7% from Q3,” reports PitchBook’s Q4 2023 Insurtech Report.
The deal data company reported only one bright spot in the quarter: financing for annuity-related start ups.
The financing drought is no doubt caused by several factors, including those impacting the broader VC landscape (interest rates, difficult IPO markets, challenges faced by PE buyers, continued SVB fall out, etc.), but we think PitchBook’s graphic below is especially illuminating.
The report does note the Q4 sale of cyber insurance provider Corvus to Travelers for $435 million, a demonstration of how tech entrants can scale rapidly in this market and attract attention from legacy strategics.
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