Envelop Risk, a UK-based specialist cyber and emerging risk underwriting firm, has raised $130m in a Series B funding round led by SoftBank Vision Fund 2.
The insurtech intends to use the proceeds to expand its underwriting operations in London and Bermuda. It also plans to foray into the global market and offer new lines of re/insurance solutions.
The money will also be used to fund the company’s plans to expand cyber reinsurance operations, form new cyber technology partnerships and invest in predictive analytics technology to assess the economic impact of cyber risks on commercial entities.
Envelop Risk leverages artificial intelligence, and data analytics technology to underwrite tailored reinsurance for insurance companies.
It also offers embedded insurance solutions in partnership with cyber technology firms.
SoftBank Investment Advisers investor Neil Cunha-Gomes will join Envelop Risk’s board of directors. The deal is expected to close in October 2021.
Envelop Risk co-founder and CEO Jonathan Spry said: “This transaction will allow us to continue our leadership in data-driven speciality (re)insurance underwriting and will be transformational for our business reach and activity. For the first time Envelop Risk will be able to assume positions in risk capital, which gives us greater alignment with our partners.”
SoftBank Investment Advisers senior investor Karol Niewiadomski said: “While companies all over the world are improving their digital preparedness, the cyber threat landscape continues to evolve at a rapid rate. We believe Envelop Risk has developed a proprietary data-driven approach to meet this threat through an enhanced level of protection that directly translates to lower loss ratios.”
In May 2019, MS Amlin purchased an equity stake in Envelop Risk for an undisclosed sum.