b'Technology | Insurtech COMPANY CAPITAL RAISED IN 2020 METHODMETHOD OF CAPITAL RAISING(IN MILLIONS) OF CAPITAL RAISINGRoot $724 IPODuck Creek $405 IPOLemonade $300 IPOMidwest Holdings $70 IPOBright Health $500 Series EHippo $500 $350 million Series E + $150 million convertible bondstrategic investment by Mitsui Sumitomo Ki Insurance $500 Private equity/Strategic Investment:sBlackstone and Fairfax Financial HoldingsOscar Health $365 Series D or laterUnquork $258 $51 million Series B + $207 million Series CNext Insurance $250 Series DPie Insurance $127 Series B/Strategic Investment by Gallatin PointStates Title $123 Series CPolicygenius $100 Series DRhino $95 Series B/Pre-IPOSource: CB InsightsIn addition to raising capital through IPOs and ventureincumbent insurance players did not have the luxury capital financings, some insurtechs are consideringof time or extra cash to invest in companies that did merging with a publicly traded special purposesnot have technology or innovation that could be acquisition company (SPAC) to raise capital, poten- implemented quickly. This development, together tially lowering its cost of capital and develop a liquidwith a few leading insurtechs raising large amounts of market for its securities through being a publicly listedcapital, resulted in a lower proportion of early stage company. At the date of publication, Metromile, Inc.insurtechs being funded in 2020 relative to total (Metromile) agreed to merge with SPAC, INSUinsurtech funding compared to previous years. Acquisition Corp. II. If this transaction is successful,According to the data, as illustrated by the graphs Metromile will have access to an additional $294from CB Insights, below, the size of Series D and million in cash and become a publicly listed companyabove deals in 2020 were greater than the average on Nasdaq. [See Mergers & AcquisitionsSPACs forsize Series D and above deals from 2012 to 2020. In further information on SPACs in the insurance industry].addition, the number of Series D and above deals (31 While some later stage insurtechs enjoyed highdeals) comprised almost one-third of all Series D and valuations and readily available access to capital,above deals from 2012 to 2020 (101 deals). many earlier stage insurtechs struggled to get accessAlthough early stage insurtech corporate venturing to funds in 2020. In general, corporate venturing bydeclined in 2020, we continued to see a dynamic incumbent insurance players decreased in 2020.level of collaborations between insurtechs and COVID-19 created significant insurance losses toincumbent insurance players. Collaborations allow insurers and created operational challenges inincumbent insurance players to quickly access digital meeting customer needs during a pandemic, espe- platforms and other technology required to enhance cially if the insurer employed outdated technologytheir insurance offerings. During the challenges and digital customer interfaces. In short, manyposed by the pandemic, collaborations also help 92 GLOBAL INSURANCE INDUSTRY|YEAR IN REVIEW 2020'