London Startup, Cytora, is a provider of artificial intelligence (AI) technology that transforms commercial underwriting in insurance. The startup has recently closed a £25m series B funding round led by EQT Ventures.
This round also saw participation from existing investors, Cambridge Innovation Capital and Parkwalk, as well as some angel backers.
Founded in 2014, the startup was spun out of the University of Cambridge. Today, it has its home in London’s Shoreditch. The company’s technology applies AI to data to help businesses to buy insurance online. This technology can better predict risk and ensures more transparent pricing. Businesses are able to buy insurance online in less than a minute and the startup’s technology is used by industry giants such as Axa.
According to the chief executive and co-founder of Cytora, Richard Hartley, the firm will use the funding to fuel international expansion.
“With this investment, we’re looking forward to widening our impact and helping accelerate the insurance industry’s digital transformation,” said Hartley.
“Over the next 24 months, we’re going to scale across the insurance value chain and move into new geographies.”
EQT lead the funding round and has previously backed the likes of contraception app Natural Cycles. EQT said Cytora will disrupt business insurance in the same way challengers such as Monzo have changed banking.
“We’re seeing a radical transformation in insurance, with organisations now expecting the same level of simplicity, transparency and convenience from their business insurers as they’re getting from consumer insurers and digital banks,” said Lyle Fong, partner and investment adviser at EQT.