London-based insurtech firm Hyperexponential acquired $73 million in Series B equity investment to provide “decision intelligence” for pricing to the property-casualty (P&C) insurance sector.
Boston-based Battery Ventures led the investment, with Highland Europe and Andreessen Horowitz (a16z) investing.
Hyperexponential, founded in 2017, helps insurers and reinsurers make better pricing choices by utilizing predictive data and insights from more sources, including narrow, sparse, and highly fragmented data. 
Hypereponential’s HX Renew software lets insurers construct predictive models and use APIs to connect data sources and processes across systems, using automation and machine learning to assess risk and get insights from changing data.
After raising $18 million in 2021, Hyperexponential claims to have expanded revenues tenfold while staying profitable and having big-name customers like Aviva.
This recent investment supports these assertions. In the present economic situation, a $73 million equity-based investment round sticks out, showing the target business has a strong balance sheet and growth trajectory.
Hyperexponential’s hiring of high-profile U.S. VC companies indicates a worldwide expansion strategy beyond the U.K. and Poland to the lucrative U.S. market.
“We’ve focused on building a capital-efficient, independent business that was both high-growth and sustainable from the outset,” said Hyperexponential co-founder and CEO Amrit Santhirasenan. Although we have more cash on hand than we’ve raised, we wanted to hire fresh target market experts as we expand into new verticals and locations.
Europe calls
Both OMERS and Coatue left U.K. VC in recent months, raising doubts about Europe’s attraction for early-stage investors. IVP and Andreessen Horowitz, which launched its U.K. office in November, were two more prominent VC firms that did the reverse by opening international hubs in London last year.
a16z focused on crypto, blockchain, and “web3” technologies, which the acclaimed VC company has been optimistic about recently. To be fair, it has continued to invest in cryptocurrency companies, such as London-based Pimlico a few months ago, but Databricks and MotherDuck have also noted investments in AI, healthcare, and enterprise.
While crypto is still on a16z’s radar, it’s clearly interested in making larger investments in tried-and-true technology that’s solving real industry problems. The P&C insurance market was pegged at $1.8 trillion last year, and Hyperexponential’s growth and profitability claims make it appealing to venture capital firms.
Hyperexponential aims to launch a New York office and expand its employment to more than 200 this year with $73 million from two of the largest U.S. VC companies. Additionally, the business wants to enter adjacent industries, like SME insurance.
