TEL AVIV, Israel, Nov. 22, 2021 /PRNewswire/ -- Vesttoo, a leading global Alternative Reinsurance and Investment platform, today announced its $15M Series B equity investment from Mouro Capital, which is backed by a large multinational bank, and MS&AD Ventures, the corporate venture capital fund of Japan-based MS&AD Insurance Group Holdings, the fifth largest insurance conglomerate in the world.
"Mouro Capital and MS&AD see the same opportunity we see: Vesttoo's marketplace as a global deal pipeline that drives capacity directly from the capital markets to insurers, while delivering exceptional return on risk to investors by opening up this new asset class," said Yaniv Bertele, CEO of Vesttoo. "Their partnership is an amazing vote of confidence in us and is a signal to financial and insurance institutions that we are significantly increasing business capacity. Together, we are going to scale our ILP and fully digital marketplace."
The Series B round, which comes just three months after Hanaco Ventures led the company's Series A round, will drive expansion of Vesttoo's Insurance-Linked Program (ILP) offering, an innovative security-based investment portfolio, as well as the world's first fully digital marketplace for insurance-based risk transfer and investments. Both are integral to Vesttoo's business strategy, aimed at bridging the funding gap in the reinsurance market.
Vesttoo's ILP investment portfolio is focused on fully collateralized Life and P&C reinsurance transactions. Through the ILP program, investors can pledge existing securities as collateral in these transactions, earning additional spreads over current yields (long-term, structured alpha), without increasing their risk profile.
Furthermore, Vesttoo's marketplace, a first of its kind in the market, provides insurers with access to capital market originated capacity. Investors, on the other hand, benefit from direct access to a new asset class comprised of low volatility insurance risks and attractive risk reward.
Mouro Capital, which is backed by a leading multinational bank, is focused on investing in the future of financial services. Mouro Capital manages $400M in assets and has invested in companies such as iZettle (acquired by PayPal), Kabbage (acquired by American Express), Creditas, Curve, Ripple, Tradeshift, Trulioo and Upgrade.
"We are excited to partner with Vesttoo as they continue to innovate and bring new products, such as the ILP, to market for both insurers and the capital markets," said Chris Gottschalk, General Partner at Mouro Capital. " We have been impressed with team's ability to leverage technology to build a truly differentiated marketplace"
Jon Soberg, Managing Partner at MS&AD Venture, said "Our team at MS&AD Ventures is really excited about the tech-driven approach to risk transfer that Vesttoo is applying to the reinsurance market. We believe this is the future and we see huge opportunities as risks such as climate and cyber become bigger and more complex. Vesttoo has a great team and we are excited to be part of the journey with them."
About Mouro Capital: Mouro Capital is a venture capital firm backing entrepreneurs who are shaping the future of financial services. With $400 million in assets under management, Mouro invests across the fintech value chain in early to growth stage start-ups across Europe, North America and Latin America. Mouro has invested in companies such as iZettle (acquired by PayPal), Kabbage (acquired by American Express), Creditas, Curve, Ripple, Tradeshift, Trulioo and Upgrade. For more information, visit: http://www.mourocapital.com
About MS&AD Insurance Group Holdings, Inc.: MS&AD Insurance Group Holdings, Inc. is the insurance holding company of the new Group formed in April 2010 through the merger of Aioi Insurance Co., Ltd., Nissay Dowa General Insurance Co., Ltd., and Mitsui Sumitomo Insurance Group. The purpose of MS&AD insurance Group is to achieve sustainable growth and to enhance enterprise value through the creation of a world-leading insurance and financial services group that operates globally, by rapidly and significantly improving quality and expanding its operating presence and corporate resources.
About MS&AD Ventures: MS&AD Ventures is an early stage venture fund looking broadly at technology companies in Fintech, InsurTech, AI, IOT, Big Data and Cybersecurity. They are backed by MS&AD Insurance Group Holdings, the 5th largest insurance conglomerate in the world.
About Vesttoo: Vesttoo is the world's first marketplace for Life and P&C insurance-based risk transfer and investments. Our proprietary AI-based technology facilitates risk transfer between insurance companies and institutional investors, providing insurance-linked investments to asset managers of all types, while enhancing risk transfer and capacity in the Life and P&C insurance markets. Vesttoo's founding team include Yaniv Bertele, Chief Executive Officer, Alon Lifshitz, Chief Product Officer, and Ben Zickel, Chief Technological Officer.
Media Contact: Liran Grunhaus, Head of Marketing, [email protected]