UK-based venture capital firm MTech Capital reached the first close of an insurance fund yesterday with $75m from corporates including financial services firm CNA Financial Corporation and insurance and financial group NN Group.
CNA and NN were joined by an undisclosed “top-three” insurance firm as anchor investors in the InsureTech fund, and MTech intends to secure additional insurance providers as limited partners on the way to a $150m final close in the next year.
InsureTech, which has offices in London and Los Angeles in the US, is targeting developers of technology capable of disrupting the insurance industry, particularly early-stage companies.
MTech has also formed parallel funds in the form of structured partnerships, it said, but did not disclose precise details.
Kevin McLoughlin, co-founder of MTech, said: “Insurance executives understand their industry is being transformed by technology and want to be in front of developments.
“Insurance companies are our investors and we look forward to welcoming more of them into our InsureTech Fund. [Co-founder Brian McLoughlin] and I designed the fund with their strategic goals in mind.
“Our ambition is to become the preeminent venture capital firm for InsureTech entrepreneurs globally.”