Parametric insurtech platform Arbol has raised around $7m in its Series A fundraising round, increasing its valuation from the initial seed round.

The round was participated by the company’s all existing investors, including Finch Finance and Space Capital, in addition to a new investor, Mubadala Capital-Ventures.

Founded in 2018, Arbol provides parametric products that provide coverage against external risks including unexpected weather.

The company plans to use the new capital to expand the footprint of its platform.

During the first eight months of live transactions, the platform is said to have facilitated hundreds of deals for institutional clients, representing over $15m in notional risk.

Arbol founder and CEO Sid Jha said: “Our strong Series A fundraising positions us extremely well to grow our team at a rapid pace while expanding our commitment to offer fair and fast financial protection for our customers affected by external risks such as climate change.

“This new capital, paired with having dedicated risk capacity, gives us the ability to continue to invest in and significantly grow the footprint of the Arbol platform.”

Arbol previously secured in excess of $250m of its own risk capacity to accelerate the expansion of its parametric offerings.

Commenting on Arbol’s Series A financing, Mubadala Capital-Ventures director Luke Nicklin said: “At Mubadala, we are committed to partnering with exceptional founders early on in their journeys and supporting companies as they scale successfully.

“We saw in Arbol an opportunity to leverage geospatial data and next-gen underwriting analytics, to bring efficiency and transparency to the insurance industry, and ultimately help businesses of all sizes manage climate risks.”

In December 2020, digital life insurance platform Bestow raked in $70m investment to launch new products and scale platform services.