February was a relatively active month, with five funding deals announced. While this is one fewer than the same period last year, it marks an increase from the previous month. Beyond the UK, Germany recorded its first startup funding round of the year, while the rest of Europe continues to drive the ecosystem, remaining the most active region.
Notably, two of the five deals involved AI-first startups, reinforcing the momentum of AI innovation in the insurance technology sector. We’ll explore this trend further when we break down the third-largest funding round of the month, which was led by an AI-driven insurance startup.
In total, these startups raised €15 million, leading to an average funding size that remains relatively modest. This can be attributed to a mix of early-stage rounds for some companies and follow-on rounds for others at reasonable valuations, reflecting the radical shift in investment dynamics over the past 18-24 months—something regular listeners of this podcast will already be familiar with.
To summarize: five deals announced, €15 million invested—that’s the key takeaway from the numbers.
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Let’s now take a closer look at the three biggest deals of the month to analyze what insights we can gain—either about the startups themselves or the broader trends they represent.
Kicking off our ranking in third place is Muffintech, a German startup that announced its first funding round, raising €3.5 million—which is on the higher end for a seed round. This is likely due to its positioning as an "AI-powered insurance" company. Muffintech’s website highlights its AI-driven technology, which aims to enhance customer relationships for insurance incumbents by supporting internal insurer teams. The round was led by FF Venture Capital, which joins Techstars, an early backer of the company since August 2022, around the time of its launch. According to LinkedIn, Muffintech currently employs 26 people, a 4% increase over the past year.
Taking second place is Wopta, an Italian startup that raised €4 million, adding to its previous funding rounds and bringing its total capital raised to €12 million since launch. This latest round comes just six months after its last funding announcement and was backed by a group of individual investors assembled through a club deal. Wopta specializes in insurance solutions for SMEs and self-employed professionals, as well as personal insurance products, all of which are offered through a fully digital infrastructure that enables its partners to distribute insurance seamlessly. As of this funding round, Wopta serves over 200,000 clients and has secured regulatory approval to expand into France and Spain. However, despite its growth, the company has reduced its workforce by 7% over the past year, now employing 25 people.
Topping the list with the largest funding round of the month is Renew Risk, a UK-based startup that secured €6 million, led by Molten Ventures. This round comes 18 months after its previous raise, which helped introduce the company to the market. Renew Risk develops risk modeling solutions for renewable energy projects and infrastructure, positioning itself at the intersection of product innovation and underwriting within the insurance value chain. The company already collaborates with Tokio Marine and McGill Partners, among others. Founded in 2021, Renew Risk now has 16 employees, a 33% increase over the past year, according to LinkedIn.
