April was relatively quiet.
Only three funding rounds were announced in recent weeks, breaking—at least temporarily—the strong momentum observed over the previous two months. We’re back to January levels.
More notably, for the first time this year, the number of deals is down compared to the same period last year. With 18 deals announced since January 1st, 2026, that’s a 14% decline compared to the first four months of 2025.
On the other hand, in terms of amounts invested, the year remains significantly more dynamic than last year. We’re at +100% in total capital deployed into European InsurTech. That said, April contributed only modestly to that figure, with just €29 million raised—making it another particularly low month, not only compared to the very recent past but also over the last 24 to 30 months more broadly.
More capital invested but fewer deals overall—this reinforces one of the trends I mentioned earlier: the emergence of category leaders. April is no exception, with a long-standing UK auto insurance player—previously labeled a unicorn during the peak of startup and InsurTech hype—now reasserting itself as a leader in its category with this new round.
In short: 3 deals announced, €29 million invested—that’s the key takeaway on the numbers side.
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Let’s now take a closer look at the biggest deal of the month to better understand the startup illustrating the telematics trend discussed earlier.
At the top of the podium, it’s once again Zego with the largest round of the month. The UK startup has raised $28 million, led by Sompo Holdings, which also announced a strategic partnership to co-develop telematics-based insurance offerings.
This new round comes more than five years after its last one, announced in 2021 in two stages—$150 million followed by $80 million just months later. At the time, Zego was claiming unicorn status.
This latest round is therefore much more modest, and the unicorn narrative is no longer part of the story—Zego itself no longer references it. That’s somewhat surprising, especially since just weeks ago the company was highlighting its profitability, suggesting it might not need to raise funds again to sustain its growth.
As a reminder, Zego launched in 2016 in the UK, initially focusing on commercial auto insurance, particularly for ride-hailing drivers and fleet operators. Following the InsurTech boom of 2021–2022, the company underwent a significant downsizing and pivoted toward personal lines (B2C).
In 2024, Zego reported selling 15 million policies over the year and announced its first profitable quarter by the end of that year. By September 2025, it was also reporting 40% annual revenue growth.
It’s also worth recalling that Zego transitioned from an MGA model to a full-stack insurer, obtaining its insurance license at the end of 2019. It has since expanded beyond its domestic market, including into France.
As of this latest funding round, Zego employs 361 people according to LinkedIn—up 15% year over year.
