Israeli venture capital firm FinTLV Ventures has raised a new $120 million fund focussed on investing in global growth-stage insurance-technology and fintech companies.
The second fund, called FinTVL II, will invest in the “best global companies” in the insurtech field, the VC firm said in a statement. This fund is in addition to around $200 million that FinTLV had invested last year.
“The insurance industry is… undergoing a fundamental disruption. The revenue of the US insurance industry is five times larger than that of the banking industry; yet the technology used by most insurance companies is antiquated. The leading insurtech companies drive this revolution,” said Gil Arazi, founding partner at FinTLV.
Apart from Arazi, FinTLV is led by managing partners Avishai Silvershatz, Mark Chess and Gilbert Ohana, who is a former senior Israeli intelligence officer.
FinTLV said the fund’s backers include several insurance companies including Clal Insurance, Psagot Investment House, Poalim Capital Markets as well as Ayalon Insurance from Israel.
Other institutional investors include MS&AD Insurance from Japan, Hong Kong-based insurer FWD, Italian insurer Reale Mutua and LB Group from Denmark.
The Tel Aviv-based VC firm counts at least three insurtech unicorns in its portfolio. These are Hippo Insurance, Next Insurance and Unqork.
FinTLV had led a $150 million financing round in Hippo Insurance with an investment of $50 million at a valuation of $1.5 billion. The VC firm also invested about $50 million as part of a $250 million round in Next Insurance at a valuation of about $2 billion, alongside Google’s growth fund Capital G.
Besides, it invested in Unqork, which has recently completed a financing round of about $200 million led by BlackRock at a valuation of about $2 billion.
According to a Business Insider report, global insuretech funding in 2020 hit a record $7.12 billion with as many as 377 deals.