Israeli insurtech company Vesttoo has announced the completion of an $80 million Series C financing round at a company valuation of $1 billion (after money). The financing round was led by Mouro Capital with the participation of Gramercy Ventures, Black River Ventures (BRV) and Hanaco Ventures.
Vesttoo's valuation as a unicorn is especially surprising when taking into account the slowdown in startup raising and that its most recent financing round was in November 2021, when Vesttoo raised $15 million, at a company valuation of $300 million. In August 2021, Vesttoo raised $6 million at a company valuation of $36 million, just a few months after raising money at a valuation of $22 million.
Vesttoo was founded in 2018 by CEO Yaniv Bertele, CPO Alon Lifshitz, and CTO Ben Zickel. Bertele said, "The idea that the three of us had was to focus on an area where there was a financing gap and where it's possible to create investment opportunities in the capital market."
He added, "Our clients and equity partners understand the Vesttoo vision and the opportunity we provide, 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."
Vesttoo has 140 employees in Israel and overseas and according to Bertele 85% of the company's clients are in the US and 15% in Europe. He said that the aim of the current financing round is for acquisitions that will expand the company's activities.
Bertele stresses that the company is already profitable and ended 2021 with tens of millions of dollars profit in EBITDA terms. He predicts three digit profit in 2022.
Vesttoo receives a percentage from each deal on its marketplace platform. Bertele said, "It's about time that companies stop being concerned with how much money they have raised or how much they are bringing in and focus on profitability."
Published by Globes, Israel business news - en.globes.co.il - on October 25, 2022.
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