hyperexponential – a global leader in pricing decision intelligence (PDI) software – recently announced the completion of its $73 million Series B funding round led by global technology-focused investment firm Battery Ventures, with participation from a16z, and existing Series A investor Highland Europe, which increased its holding.
hyperexponential provides insurance and reinsurance companies in the multi-trillion-dollar global property-casualty insurance industry, protecting individuals and businesses from various risks. And as factors like climate change, geopolitical unrest, and cyberterrorism increased the frequency and severity of risks, the industry has pursued next-generation risk pricing methods to augment or supplant traditional pricing models for a changing world.
hyperexponential’s PDI platform hx Renew enables insurers to leverage large and alternative datasets, develop and refine rating tools rapidly, employ sophisticated machine learning approaches to price risk, and make data-driven pricing decisions at the portfolio and individual level. And since the company’s Series A in 2021, hyperexponential has grown sales 10x while staying profitable, serving some of the world’s largest insurers, including Aviva, HDI, and Conduit Re.
This latest funding round will support hyperexponential’s expansion into the US as it is targeting opening its New York office this year. And it will also enable increased investment in new product capabilities to serve growing client demand in adjacent insurance markets, including the SME insurance sector. The company also plans to double its global team to over 200 next year.
Sponsoring the Series B investment and joining hyperexponential’s board as a director is Battery Ventures Partner Marcus Ryu, Co-founder, Chairman, and former CEO of Guidewire Software – which has grown into one of the world’s largest Insurtech companies since its 2001 founding. Also joining the company’s board is experienced a16z General Partner Angela Strange.
The hx Renew platform enables customers like Convex and Conduit Re to improve their competitive edge with enhanced agility, efficient risk transfer, and aggregate loss avoidance. Last year, Aviva’s Global Commercial and Specialty team built 20 models in 9 months, unlocked machine learning capabilities, and improved the speed and accuracy of their pricing and underwriting decisions, even as the frequency and severity of risks continue to evolve continuously.
KEY QUOTES:
“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.”
— Amrit Santhirasenan, hyperexponential CEO and Co-founder
“I believe hyperexponential is among the most compelling new entrants in insurtech I have seen in over twenty years of serving the P&C insurance industry. As former software engineers and actuaries with top tier commercial insurers, Amrit and Michael each bring a deep practitioner’s grasp of the new requirements for risk pricing. 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.”
— Marcus Ryu
“Pricing risk is the most critical function of an insurance carrier. 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. Amrit and Michael’s actuarial experience helped them design the system the insurance market needed, and hyperexponential has achieved incredible traction with technical users and executives alike as they’ve completed multiple industry-leading deliveries around the world. hx Renew is rapidly becoming the operating system for pricing risk in the global insurance market. We are thrilled to join forces with the hyperexponential team as they launch in the US and expand beyond specialty lines.”
— Angela Strange, General Partner at a16z
