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Andreessen Horowitz backs insurtech Hyperexponential in £57m round

Amrit Santhirasenan, CEO of Hyperexponential
Amrit Santhirasenan. Image credit: Hyperexponential

British insurtech company Hyperexponential has secured $73m (£57.3m) funding in a Series B round backed by Silicon Valley investor Andreessen Horowitz.

Hyperexponential provides modelling software to insurance companies to determine policy prices.

Its pricing intelligence tools are used by the likes of Aviva and Conduit Re during underwriting.

The all-equity round was led by investment firm Battery Ventures. Previous backer Highland Europe increased its stake in Hyperexponential.

Hyperexponentia, which was founded in 2017, said it will use the influx of capital to double its headcount to over 200 people in the next year.

The London-headquartered firm plans to open a New York office later this year. It follows a $18m Series A round in 2021.

“The insurance industry is at the forefront of a rapidly changing world and must find ways to understand and respond to that change in risk profile,” said Amrit Santhirasenan, CEO and co-founder of Hyperexponential.

“We’ve focused on building a capital-efficient, independent business that was both high-growth and sustainable from the outset. Although we have more cash-on-hand than we’ve raised, we wanted to bring on new expertise in our target markets as we continue our growth into new verticals and geographies.”

The sizeable deal follows two years of declining startup funding activity. However, data published this week shows that UK tech funding is showing signs of recovery, with Dealroom data showing that startups raised $21.3bn last year – the third highest on record.

Angela Strange, general partner at Andreessen Horowitz: “Pricing risk is the most critical function of an insurance carrier. Yet, most actuaries still work with cumbersome Excel models and are constrained by legacy software that limits their ability to dynamically incorporate new data and more sophisticated analytical techniques.”

Andreessen Horowitz, also known as a16z, last year selected London as the location for its first international office. The Silicon Valley investor has backed the likes of Coinbase and Facebook, along with British firms Arweave, Aztec, and Improbable.

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