Insurtech Neat raises €50 million: sign of a rebound for the sector ?

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Neat , a start-up specializing in embedded insurance, has signed a €50 million Series A funding round. The transaction can be interpreted as a strong signal for insurtech, a sector that has gone through a long period of scarcity.

700% growth for Neat

Founded in 2022 by Fabien Cazes and Maximilien Dauzet, Neat offers distributors the opportunity to integrate insurance (theft, breakage, loss, extended warranty) directly into the purchasing process. The young company has experienced exponential growth: +700% in just twelve months.

It has around forty insurance products, which it distributes through 1,500 customers. Among them, we find big names like Floa, Decathlon, Pierre et Vacances, Alain Afflelou and Sport 2000.

This new operation, announced on September 11, marks its second fundraising after an initial seed round when it was created. At the time, Neat had raised 10 million euros. This latest round was led by the London investment firm Hedosophia, ETFS Capital, Athletico Ventures and Founders Future.

Insurtech rises from its ashes

And it is notable. It is occurring, in fact, in an unfavorable context for French start-ups. In addition to companies from the AI ​​and greentech sectors, the search for funds is currently complex for young shoots.

This is all the more true for insurtech, which has been hit by a huge slowdown in recent months. This is evidenced by the significant financial difficulties encountered by the neo-home insurance Luko, acquired by the giant Allianz at the beginning of the year.

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As noted by Les Échos, Neat's model is different: affinity (or embedded) insurance provides much lower acquisition costs than those of direct insurers such as the unicorn Alan. “Between 2019 and 2022, two thirds of funding went to start-ups with insurer approval and those that were involved in direct distribution like Luko and others. In the first half of 2024, we are at less than a third ”, explains Florian Graillot, founder of the venture capital fund specializing in insurtech Astorya, to the daily. Moreover, Estaly, a young shoot operating on a model similar to Neat, raised 3.6 million euros in seed in April. It is now in an acceleration phase.

Nowadays, cyber insurance providers, which protect businesses against financial losses resulting from cybersecurity incidents, as well as those targeting VSEs and SMEs, seem more likely to do well in the insurtech industry.

For its part, Neat plans to use these new funds to accelerate its expansion abroad. The goal: to become the world leader in embedded insurance.

• The insurtech startup Neat has just raised €50 million in Series A
• It offers embedded insurance solutions. Distributors are integrating them into their customers' purchasing journey
• This round of funding can be interpreted as a signal of the renewed appeal of insurtech, after a rather slack period

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