Insurtech Novidea has raised an additional $30 mn funding from HarbourVest Partners. The investment brings Novidea’s total Series C funding round to $80 mn, with participation from existing investors Battery Ventures, Cross Creek, Israel Growth Partners (IGP), KT Squared, and JAL Ventures.
Novidea is a data-driven insurtech platform that leverages the power of the Salesforce cloud ecosystem to transform the insurance industry.
In 2023, Novidea has raised $50 mn in its latest round of funding led by Battery Ventures. Funding from Battery Ventures represents new investment in Novidea and was supplemented by Cross Creek, another first-time investor in the insurtech. The $50m invested in Novidea comes after the company reported a 90% growth rate year-on-year, with a net revenue retention rate of 139%.
Built specifically for insurance brokers and agents, Novidea provides a comprehensive suite of tools that cover the entire customer journey, from initial engagement through underwriting to claims management and customer retention.
The investment news follows on from Novidea bolstered its senior leadership team with the appointments of Eran Ben Ezer as Chief Financial Officer, Yaniv Cohen as Chief Customer Officer, Erez Nissim as Chief Technology Officer, and Jeffrey Heine as Chief Revenue Officer.
The insurance sector is at a major inflection point, and we see significant growth potential as more organisations transition away from legacy technology in favour of innovative, modern solutions.
Roi Agababa, CEO of Novidea
With this investment, Novidea will have the resources need to further refine product, expand our operations into new territories, and explore the possibilities of making strategic acquisitions in this space (see Biggest InsurTech Startups).
With a track record of hyper-growth and successful engagements with leading insurance organisations worldwide, Novidea is poised to capitalise on the burgeoning demand for innovative insurance technology solutions.
The infusion of funds will fuel Novidea’s ambitions to solidify its position as an industry leader, with a strategic focus on organic global expansion, product innovation, and executing its inorganic growth strategy.
We have invested in the insurance brokerage sector for years and have been impressed by the operational efficiencies that Novidea’s software solution delivers for brokers
Corentin du Roy, Managing Director, HarbourVest Partners
“We look forward to supporting the Novidea team as they continue to scale their activities internationally.”
The investment comes at a time when digital transformation takes center stage in the insurance industry.
With technology spending expected to surge by more than 25% by 2026, there is a growing demand for innovative solutions addressing critical pain points such as data quality enhancement, seamless digital customer experiences, and streamlining repetitive processes for insurance professionals.
Novidea has expanded its workforce across various global regions, including the UK, North America, and Europe, while also launching operations in Southeast Asia in late 2023.
Novidea underscored the significant opportunity for Insurtechs in its comprehensive report, revealing that 75% of global insurance businesses intend to overhaul their core technology within the next two years.
The core of Novidea’s platform is its ability to provide real-time insights and analytics. By integrating data from various touchpoints, Novidea enables insurance professionals to make more informed decisions quickly.
This results in enhanced operational efficiencies, increased sales, and improved customer satisfaction. The platform’s robust data capabilities allow for deep analytics on performance metrics, risk assessments, and customer behavior patterns.
One of the key features of Novidea is its CRM (Customer Relationship Management) system, which is designed to streamline the workflow of insurance brokers. It automates many routine tasks, facilitates better communication, and ensures that customer data is organized and accessible.
Additionally, Novidea supports a wide range of insurance products and is adaptable to various regulatory environments, making it a versatile tool for global insurance markets. The platform’s scalability ensures it can handle growth in data volume and complexity, making Novidea a future-proof solution for the insurance sector.
by Peter Sonner
