New $100m insurtech investment fund launches

Eos Venture Partners, a specialist venture capital investor, is launching a new $100 million fund targeting early and growth stage insurtech ventures, which will allow insurers to invest in the insurtech sector indirectly and gain access to potentially transformative technology, Intelligent Insurer can reveal.

The majority of the capital currently being invested into the space is coming direct from the investment arms of large insurers and reinsurers such as Munich Re, Aviva or Axa.

Eos Venture Partners intends to offer an alternative by raising a $100 million debut fund it is calling EVP I. It will be one of the first global, independent insurtech investment funds targeting early and growth stage investments.

Eos has already attracted a limited partner commitment of $20 million from a global insurer, with which it has entered into a strategic partnership to accelerate its innovation strategy; it also has a second $10 million commitment from another European insurer.

The plan is to close the first round of funds in the second quarter of 2018 and reach the $100 million target by the end of the year at the latest.

Eos is in advanced discussions with several medium tier insurers attracted by avoiding making the significant investment needed to setting up their own fund which can be expensive and requires a lot of capital, says Sam Evans, general partner at Eos.

Eos is also talking to one of the three largest global insurers, which is already investing hundreds of millions in various insurtech initiatives and structures. “They see what we are doing as complementary on the one hand, but also as having the potential to create something a little bit different,” Evans says.

“Because a lot of the money being invested in insurtech is coming from corporate venture capital funds and therefore from within the industry, having a group like us, thinking maybe a little bit outside the box, is also appealing to some.

“The fund has sole and final investment decision and authority,” Evans adds.

Eos wants to use the EVP I fund to make only a relatively small number of investments to avoid being spread too thinly.

“We are really looking at having a maximum of 12 to 15 investments or investment themes,” Evans explains.

To find out more about how and in what segments Eos will invest, please click here.

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