London-based insurtech firm hyperexponential has raised $73 million in a Series B funding round to fuel its expansion into the US market, led by top-tier VC firm Andreessen Horowitz (a16z).
The round sees a16z joining existing backer Highland Europe in betting on hyperexponential’s AI-powered risk models for the commercial insurance sector. Clients already include major insurers like Aviva, HDI, and Conduit Re.
Since its $18 million Series A raise in mid-2021, hyperexponential has seen meteoric 10x sales growth while remaining profitable. The new capital will support moving into new verticals and geographies.
As climate change, cyberterrorism, and political instability remake the risk landscape, insurers need cutting-edge predictive models. Most legacy pricing tools are outdated or incomplete. This is where hyperexponential comes in.
The startup provides sophisticated mathematical modeling to help insurers price risk and write policies accurately. In a validation of the product, lead investor Battery Ventures boasts insurance tech veteran Marcus Ryu.
Ryu is a co-founder and ex-CEO of Guidewire Software, a publicly traded insurtech leader. “I believe hyperexponential is among the most compelling new entrants in insurtech I have seen in over twenty years,” Ryu stated.
With top-flight funding and industry credibility, the stage looks set for hyperexponential to disrupt insurance risk modeling in the US and globally. The $73 million round caps a meteoric rise for the startup since 2017. More explosive growth now likely beckons.