Stubben Edge gains £5.6m fresh growth capital at £175m value from several Lloyd’s names
UK-based insurtech Stubben Edge Group has raised £5.6 million growth capital in an “oversubscribed” funding round, at a pre-money valuation of £175 million and a 75% uplift on the previous fundraise.
To date Stubben Edge has raised over £20 million. Cornerstone investors include several Lloyd’s names including Nigel Wray, Dowgate Wealth, family offices, institutional investors and other HNW investors.
Stubben Edge said its latest funding round was “oversubscribed and very well received by both existing and new shareholders” following its topline revenue growth of over 400% in 2022 and a similar forecast for this year.
The company plans to further expand and diversify its service offerings while capturing a greater share of the insurance value chain following its acquisition of London & International Insurance Market specialists Helodrium, Managing General Underwriter (MGU) Cedar Underwriting (both of which remain subject to regulatory approval), and broker distribution platform provider Insurercore in November 2022.
Chris Kenning, CEO of Stubben Edge, said: “In the context of the wider economic climate and decreasing confidence in the FinTech market, this fundraise is testament to the strength of our business. In 2023 our ambition continues to be to support the entrepreneurs and owners of brokers and IFAs. Helping them build their businesses by providing the technology, data and products that will enable them to service their SME clients more efficiently, cost-effectively, wherever, and whenever their clients want to engage.
“We continue to challenge the Financial Services industry, a slow adopter of technology which is both arbitrary and unbalanced. We believe that against the current economic environment it is particularly important to empower brokers and IFAs to provide better value-for-money, security and confidence for customers and their families, while building long-term business success."
David Poutney, chief executive of Dowgate Capital, commented: “We were delighted to participate in Stubben Edge’s fundraise once again. The company’s phenomenal growth in 2022, in the current difficult economic climate, showcases that Stubben Edge has an enormous growth potential. We believe that Lloyd’s and the insurance industry generally are ripe for disruption and reform and that Chris Kenning and the team at Stubben Edge are well-positioned with their strategy and products to take full advantage of the opportunity in 2023. We’re excited to see them execute on their ambitious plans and look forward to continuing to work with them on their journey.”
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