August was quiet, as usual, with just two funding rounds announced.
In total, only €3m was invested. As you can guess, both startups are at the very early stages of their journey — Seed stage.
And, as if to illustrate the diversity of models we’ve discussed before, these two startups are tackling different parts of the market. One is focused on the underwriting side, the other on distribution. One is building technology for incumbents, while the other sells insurance products directly to end clients — in this case, SMBs.
It’s also worth noting that both raises are tied to AI. As you’ve probably noticed in your daily life, this is clearly the technology of the moment. And if you’ve been following this podcast, you know that “AI in insurance” is especially active, with one-third of all deals since the start of the year linked to this tech. August was no exception, since both startups explicitly claim AI as the core of their value proposition.
In short: 2 deals announced, €3m invested — that’s what stands out from the numbers.
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Let’s now take a closer look at the two most important deals, to draw some lessons — whether about the startups themselves or the broader trends they illustrate.
Starting with Meshed, in second place. The UK startup announced a first funding round of £950k. The raise was led by Haatch and Founders Factory, the venture builder working with Aviva. The money will help Meshed develop its SMB insurance offering, sold directly online through its website. Notably, the company is already opening the door to indirect distribution, signaling that it’s open to working with independent brokers. Above all, Meshed highlights its use of AI to select, measure, and price risks it plans to underwrite. That’s crucial if it wants to stand out in an already crowded landscape, where many SMB-focused players offer direct-to-consumer online products that tend to be cash-intensive. Launched in August 2024, Meshed already showcases logos of major insurers on its site — including AXA, Allianz, Markel, Hiscox, and Zurich. As of now, the company employs 10 people, up 67% year-over-year, according to LinkedIn.
Finally, on the top step of the podium, we have Novee, which announced the largest raise of the month. The UK startup secured £1.6m in its first round, backed by 42cap (Germany) and InsurTech Gateway (UK), a fund that usually backs tech-enabled MGAs. Novee is a B2B player, developing technology for incumbents — specifically AI. Once again, we’re squarely in the theme of the moment. What makes Novee stand out, however, is its focus on the underwriting side of the value chain, with a proposition centered on understanding complex risks. That’s a double originality compared to many AI-in-insurance players, who tend to favor flexible, co-creation approaches with clients and usually target customer engagement or claims management. Novee is taking a different path. Still, beyond these ambitions, the startup seems very young: its website provides little detail on product features or client logos. For now, the company employs three people, a figure unchanged since its launch a year ago.
