Hyperexponential Secures $73 Million to Grow Insurance Pricing Platform

Hyperexponential, a provider of pricing decision intelligence software for the insurance sector, has received $73 million in a Series B funding round. Hyperexponential’s Series A funding round closed in 2021 and to date sales have grown by 10x and the business remains profitable.

The new financing was led by technology-focused investment firm Battery Ventures with participation from Andreessen Horowitz and existing backer Highland Europe.

As factors like climate change and cyber risks drive up claim frequencies and severities, insurers have sought advanced pricing models to supplement traditional actuarial approaches which too often need to rely on small, sparse, and fragmented insurance pricing data.

To address this need, Hyperexponential’s pricing decision intelligence platform, hx Renew is used by property-casualty insurers to leverage large datasets, build models, and access machine learning to make risk pricing and data-driven decisions. Major customers of  Hyperexponential include Aviva, HDI, and Conduit Re. In 2023, Aviva built 20 models in 9 months with hx Renew, improving the speed and accuracy of pricing and underwriting despite continuously evolving risks.

In August 2023, Insurance Insider magazine named Hyperexponential as its “Insurtech Product of the Year.” The London-headquartered company has just 100 employees and was co-founded by CEO Amrit Santhirasenan and Michael Johnson in November 2017.

The capital raised in this round will support the company’s expansion into the United States including plans to open a New York City office in 2024, development of new product capabilities with a specific focus on small business insurance. Hyperexponential intends to double its global team to over 200 in the next 12 months.

With the closing of the Series B round, Hyperexponential will add two new board members:

Leading the transaction was Marcus Ryu, a partner at Battery Ventures and the former CEO and chairman of insurance software firm Guidewire; and Angela Strange, a general partner at Andreessen Horowitz.