Software InsurTech Novidea Raises $30m in Series C Funding
Insurance software solution specialist Novidea today announced it has raised an additional US$30 million from HarbourVest Partners, bringing its total Series C round to US$80m. HarbourVest Partners now joins existing investors Battery Ventures, Cross Creek, Israel Growth Partners (IGP), KT Squared and JAL Ventures.
Over the last several years, Novidea has experienced a period of rapid growth, indicating an increased demand for cloud-native services. According to Novidea's company reports, the company experienced 90% year-over-year business growth in 2022, selling a “born-in-the-cloud, data-driven insurance platform” to insurance organisations across the globe.
Funds will be used for continued organic expansion to additional territories to meet growing demand, as well as to “accelerate product innovation and support the execution of Novidea’s inorganic growth strategy”.
Corentin du Roy, Managing Director, HarbourVest Partners, says: “We are delighted to partner with Novidea to support the company’s next phase of growth. We have invested in the insurance brokerage sector for years and have been impressed by the operational efficiencies that Novidea’s software solution delivers for brokers.
“We look forward to supporting the Novidea team as they continue to scale their activities internationally.”
Digital transformation and growth
Digital transformation remains a top priority for insurance organisations worldwide. Insurance technology spending in the US and the UK is expected to grow by more than 25% by 2026, according to the most recent Insurance Heads of Digital Report.
Innovative technology solutions that address data quality and access issues, improve the digital customer experience, and reduce repetitive processes for the insurance workforce are in high demand as the insurance industry heads into 2024.
Earlier this year, the company published Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024, and is based on data collected in a 2023 survey of 330 full-time, C-level insurance leaders across eight countries, revealing that 75% of insurance organisations worldwide will change insurance management technology platforms by 2025.
“We are thrilled to welcome HarbourVest as our newest investment partner, along with our existing investors,” said Roi Agababa, CEO of Novidea. “The insurance sector is at a major inflection point, and we see significant growth potential as more organizations transition away from legacy technology in favour of innovative, modern solutions. With this investment, Novidea will have the resources we need to further refine our product, expand our operations into new territories, and explore the possibilities of making strategic acquisitions in this space.”
Novidea’s cloud-native software platform enables insurance agents, brokers, MGAs, wholesalers, and specialty insurers to automate repetitive processes, drive operational efficiencies, and increase business resilience to stay competitive and provide a better customer experience. Over the last three years, Novidea has increased its headcount in multiple global regions, including the UK, North America, and Europe. The company also launched in Southeast Asia in late 2023. The company has recently augmented its senior leadership, including Chief Financial Officer Eran Ben Ezer, Chief Customer.
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