Vesttoo hits billion-dollar unicorn status with latest raise for expansion

Artificial intelligence-powered risk transfer insurtech  Vesttoo has joined the unicorn club with its latest funding of $80 million to fuel its global expansion plans in a market ripe for innovation.

The insurance-linked securities (ILS) focussed alternative reinsurance and investment platform secured Series C financing, which values the firm at $1 billion.

The investment is co-led by Mouro Capital and a private equity fund, with participation from a bulge-bracket investment bank, Gramercy Ventures, Black River Ventures and Hanaco Ventures.

The company has rapidly expanded its global operations in the past year, hiring professionals in London, Hong Kong, Seoul, Dubai and Tokyo, as well as growing its New York and Tel Aviv bases, establishing a Bermuda-based collateralised insurer, and hiring senior talent to bolster its executive leadership team.

Vesttoo intends to use the capital raised to further expand its global presence, enhance its marketplace platform and widen its offering to insurers and investors.

The Series C comes less than a year after Mouro Capital led Vesttoo's Series B round with participation from MS&AD Holdings. Hanaco Ventures led the Series A round in August 2021. Since then, Vesttoo has further developed its AI-based marketplace, the company's data-driven platform that facilitates the investment of new sources of capital in the insurance market. Investors benefit by accessing a low-volatility risk class uncorrelated to financial markets.

" Vesttoo has built a unique marketplace, proven by robust market demand and the Company's impressive growth trajectory," said Chris Gottschalk, general partner at Mouro Capital. "We are thrilled to double down on our partnership with Vesttoo as they continue to scale in a market ripe for innovation."

Yaniv Bertele (pictured), CEO of Vesttoo, added: "In a time rife with uncertainty, Vesttoo is showing resilience, financial strength and profitability, thanks to our compelling value proposition. Our AI-based marketplace is set to propel the insurance industry forward by better connecting risk to capital sourced from global investors."

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