Parametric insurtech Arbol raises funds for expansion

Arbol, a US-based insurtech platform for parametric products, has raised nearly $7 million in its Series A funding round.

The investment round included participation from Finch Finance and Space Capital and new investor Mubadala Capital-Ventures.

Arbol said the Series A round was oversubscribed and completed at higher valuation from its initial seed round.

The company will use the proceeds to grow its platform designed specifically for parametric products. It uses big data, machine learning, and smart contracts to bring transparency and efficiency to the weather risk market.

"Our strong Series A fundraising positions us extremely well to grow our team at a rapid pace while expanding our commitment to offer fair and fast financial protection for our customers affected by external risks such as climate change," said Sid Jha, Arbol's founder and CEO.

"This new capital, paired with having dedicated risk capacity, gives us the ability to continue to invest in and significantly grow the footprint of the Arbol platform."

Luke Nicklin, director of Mubadala Capital–Ventures, said: "We saw in Arbol an opportunity to leverage geospatial data and next-gen underwriting analytics, to bring efficiency and transparency to the insurance industry, and ultimately help businesses of all sizes manage climate risks. We look forward to the progress this new round of capital will enable, and the long-term impacts the Arbol platform will have."

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