Hyperexponential secures more than £50m in series B funding round

Hyperexponential has completed a $73m (£57.34m) funding round as part of plans to expand is pricing platform, a statement released yesterday (11 January 2024) said.

HX Renew enables insurers to leverage large and alternative datasets, refine rating tools and use machine learning approaches to price risk and make data driven decisions.

The funding will allow for increased investment in new product capabilities to serve growing client demand in adjacent insurance markets, including small and medium sized enterprises (SME).

Amrit Santhirasenan, Hyperexponential chief executive and cofounder, 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.

“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.”

People moves

The funding round was led by investment firm Battery Ventures, with participation from Silicon Valley investor a16z and existing Series A investor Highland Europe.

Following the completion of the funding round, Battery Ventures partner Marcus Ryu  joined Hyperexponential’s board as a director.

Ryu said: “I believe Hyperexponential is among the most compelling new entrants in insurtech I have seen in over 20 years of serving the property and casualty (P&C) insurance industry.

“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.”

Also joining the company’s board is a16z general partner Angela Strange.

”Pricing risk is the most critical function of an insurance carrier,” she said.

”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.”