Novidea Closes on Series C Round Worth $50m

Despite the harder market for start-up financing and growth of SMEs within the insurtech sector, there is always support for companies that can win business and prive their value. Here’s the latest from Novidea;

Novidea, creator of the born-in-the-cloud, data-driven platform that optimizes the entire insurance policy and distribution lifecycle for brokers, MGAs and US Agencies, today announced that it has raised $50 Million in Series C funding. The funding round was led by Battery Ventures with participation from Cross Creek, both new investors, and the company’s existing investors, Israel Growth Partners (IGP), KT Squared, and JAL Ventures. To date, Novidea has raised $90 Million.

Novidea will leverage the investment to continue its journey to becoming an industry leader and increase international market share. Specifically, funds will go to the further development of its cloud-based, data-driven insurance platform, fortification of its customer success infrastructure, and expansion of teams and offices across all target markets in the US, UK, EMEA, and APAC.

“While businesses globally adjust to dealing with a pronounced increase in risk—driven by geopolitical, economic, and other events—the insurance industry has generally been underserved by technology relative to other sectors,” said Shiran Shalev, Partner at Battery Ventures. “Novidea has built a modern, comprehensive software suite which currently powers some of the world’s largest and most complex insurance groups, and we are excited to partner with them for their next phase of growth.”

Shalev will also join the Board of Directors at Novidea.

FACT BOX:

In 2022, Novidea reported:

● 90% Year Over Year (YoY) growth rate

● Net Revenue Retention (NRR) rate of 139%

● Expansion of employee headcount in all key regions where it does business, including US, UK and EMEA

● Bolstering of its overseas research and development (R&D) teams

● Investment in global customer-success infrastructure to streamline service delivery in all regions

● Expansion of its senior leadership team with multiple strategic hires in marketing, HR, finance, customer success, and technology

Advising on legal matters around the transaction were law firms Pearl Cohen for Novidea and Meitar for Battery Ventures.