Latest investor news from Germany;
1750 Ventures and Gossmann & Cie. will engage as anchor investors at DGTAL, the first Software-as-a-Service platform in Europe that provides AI powered audit and tools for insurance portfolios. Together with two family offices, 1750 Ventures, the venture capital arm of German VGH Versicherungen and Gossmann & Cie. engage with a total of EUR 3 million to facilitate DGTAL scaling of its pathbreaking technology that has been developed over more than two years. Further shareholders of DGTAL will be Swiss software company DEON and the DGTAL team.
DGTAL has been started as a project in 2021 when a team around Dr. Florian Herzog and Arndt Gossmann launched DGTAL as a project to explore how AI can enable the usage of unstructured data in claims files. The prototype convinced by its ability to extract fundamentally new insights from huge amounts of unstructured data – a paradigm shift for claims management. For now, DGTAL is offering its technology to audit, evaluate and assess claims portfolios. Claims settlement and the management of it represents a core pillar of each insurance. It consumes approx. 75% of the premium. The application of AI to this process is expected to generate savings for the industry of more than EUR 100 bn and more per year – only in Europe.
1750 Ventures is a venture capital investor focused on European start-ups that are game changers in the insurance-related ecosystem. 1750 invests in promising digital pioneers that are strategically relevant for the insurance industry, such as deep tech, fintech, AI, IoT etc. Along with the values of VGH Versicherungen, 1750 Ventures investment and management philosophy is based on proximity, trust and partnership offering not only financial resources but also strategic support to its portfolio companies. Together with their partner FUTUR X, 1750 Ventures drives innovations in all operational units and business areas of VGH Versicherungen. VGH Versicherungen is the largest public insurer in Lower Saxony employing more than 4600 people and with a full scope offering all personal and property lines.
Gossmann & Cie. is a liability management firm in Hamburg. The company provides holistic and data-intuitive solutions for the management of insurance risk-related liabilities. It supports financial institutions, insurers, intermediaries, regulators and institutional investors by structuring, managing and assuming risks and/or entities with the aim to refine their portfolios and to optimize their capital base. Gossmann & Cie.’s activities include the investment in insurance and technology companies.
Chlodwig Reuter, Senior Partner at Gossmann & Cie. commented on the recent developments, “Being well anchored in the insurance community, we see the importance of digital transformations and the power of AI for redefining how insurance works. The investment in DGTAL translates our sector experience and our firm strategic belief in technology.”
Andreas Zipf, Managing Director at 1750 Ventures commented “DGTAL is an exceptional company, as it combines in-depth insurance knowledge and a technological advantage of two years in the application of AI. This means an outstanding potential in the new era of AI powered insurance operations. The company has processed more than 1 million of claims files. This remarkable journey exemplifies our investment strategy, which involves supporting outstanding founders and entrepreneurial management teams with a strategic roadmap and ambitious growth aspirations. We are pleased to enter this partnership with a new high-calibre shareholder such as Gossmann & Cie. and are looking forward to seeing DGTAL’s continued success.”
Arndt Gossmann, CEO of DGTAL and Managing Partner at Gossmann & Cie. adds, “AI will change the way insurance works. I want DGTAL to become a major technology enabler of this paradigm shift. The strategic investment of VGH Versicherungen and the financial commitment of my partners at Gossmann & Cie. is great confirmation of what our team has built. Working with investors that know what they are talking about is the best call for action for a CEO. Working with an amazing team to support the change of an entire industry is an honor.”
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