At a Glance
Vesttoo has raised $6M in Series A funding from Hanaco Ventures to enhance its multi-billion security-based investment portfolio, as well as its fully digital marketplace for insurers, reinsurers, and pension funds.
Vesttoo, a startup specializing in data-driven risk management solutions, has raised $6 million in a Series A funding round led by Hanaco Ventures, which focuses on AgriTech, SaaS, fintech and other sectors, a press release from Vesttoo said.
Vesttoo stated that this funding is a part of its broader investment strategy that aims to enhance its billion-dollar Insurance-Linked Program (ILP), a digital marketplace for insurance-based alternative risk transfer and investments.
The ILP offering of Vesttoo provides institutional investors with remote risk investments in collateralized reinsurance deals. It is a security-based investment portfolio, providing asset managers with a unique opportunity to earn additional long-term, sustainable alpha from existing assets without the need to allocate cash.
Vesttoo, founded in 2018, acts as a marketplace for non-catastrophe insurance-based risk transfer and investments. Its proprietary AI-based technology facilitates risk transfer between insurance companies and institutional investors. Vesttoo enunciated that its marketplace would allow insurers, reinsurers and pension funds to structure, price and place their offering online, while giving institutional investors direct access to the untapped market of alternative reinsurance.
Vesttoo stressed that both the ILP and its marketplace aim to increase liquidity and much-needed capacity in the reinsurance market and facilitate the alternative reinsurance ecosystem. It forms an integral part of the company’s business strategy to bridge the funding gap in the reinsurance market.
Yaniv Bertele, co-founder and CEO of Vesttoo, expressed delight at having Hanaco as an investor and added,
“This is an exceptional vote of confidence in Vesttoo’s unique offering. We have a significant global deal pipeline with insurers from the US, UK and mainland Europe, and are looking forward to further scaling Vesttoo’s ILP and fully digital marketplace with Hanaco’s support.“Yaniv Bertele, co-founder and CEO of Vesttoo
Pasha Romanovski, founding partner at Hanaco Ventures, stated that Vesttoo is disrupting the reinsurance industry using its digital marketplace with proven records of signing multi-year contracts with leading US and EU insurance and reinsurance providers.
Hanaco Ventures chose to invest in Vesttoo because of the unique solution and the company’s impressive founding team who will have a big impact in this untapped sectorPasha Romanovski, founding partner at Hanaco Ventures