hyperexponential is targeting expansion into the United States after raising £57 million in Series B funding.
The London InsurTech has developed pricing decision intelligence software hx Renew to serve insurance and reinsurance companies in the multi-trillion-dollar global property-casualty insurance industry, which protects individuals and businesses from a wide array of risks.
As factors such as climate change, geopolitical unrest and cyberterrorism have increased the frequency and severity of risks, the platform claims to enable insurers to leverage large and alternative datasets, develop and refine rating tools rapidly, and employ sophisticated machine learning approaches to price risk.
Since the company’s Series A in 2021, hyperexponential has grown sales 10x while staying profitable, serving some of the world’s largest insurers, including Aviva, HDI and Conduit Re.
The Series B was led by global technology-focused investment firm Battery Ventures, with participation from Silicon Valley investor a16z, and existing Series A investor Highland Europe, which increased its holding.
hyperexponential aims to open its New York office this year and will also look to tap into the SME insurance sector. The company plans to double its global team to over 200 in the next year.
“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.
“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.
“We are delighted to have attracted a world-class set of investors who bring an unparalleled combination of experience, expertise, and support to hyperexponential in the next phase of our expansion.”
Battery Ventures partner Marcus Ryu – co-founder, chairman and former CEO of New York-listed Guidewire Software, which has grown into one of the world’s largest InsurTech companies – joins the company’s board alongside a16z general partner Angela Strange.
“I believe hyperexponential is among the most compelling new entrants in InsurTech I have seen in over 20 years of serving the P&C insurance industry,” said Ryu.
“As former software engineers and actuaries with top tier commercial insurers, Amrit and Michael each bring a deep practitioner’s grasp of the new requirements for risk pricing. hyperexponential is rapidly becoming an indispensable tool for the insurance industry to thrive in a future that is not reliably the same as the past.”