Battery Ventures led the round
Hyperexponential, a UK-based insurtech, has raised $73m in a series B funding round led by Battery Ventures, a tech-focused investment firm.
Founded in 2017, hyperexponential provides pricing decision-making software to insurance and reinsurance companies in the property-casualty insurance industry.
The funding will be used to fuel the company’s expansion into the US, where it plans to open an office in New York this year, and to double its headcount to more than 200.
Additionally, it will also invest in new product capabilities to meet the growing client demand in adjacent insurance markets, like the SME insurance sector.
Battery Ventures partner Marcus Ryu is joining hyperexponential’s board as a director.
Silicon Valley investor a16z and existing investor Highland Europe also participated in the round.
Since the company’s series A funding round in 2021, the company has grown sales tenfold while staying profitable. It serves some of the world’s largest insurers, including Aviva, HDI and Conduit Re.
Amrit Santhirasenan, hyperexponential chief executive officer and co-founder, said: “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.
“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.”
Angela Strange, general partner at a16z said: “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.
“Amrit and Michael’s actuarial experience helped them design the system the insurance market needed, and hyperexponential has achieved incredible traction with technical users and executives alike as they’ve completed multiple industry-leading deliveries around the world.”