Envelop Risk, a leading data-driven underwriting and risk analytics business, today announced a Series B investment of $130 million led by SoftBank Vision Fund 2 . The financing will facilitate Envelop Risk’s plans to expand its proprietary machine-learning and data-driven underwriting activity in London and Bermuda, with hopes to fuel growth into new markets globally and beyond cyber (re)insurance. As part of the transaction, Neil Cunha-Gomes, Investor for SoftBank Investment Advisers, will join Envelop Risk’s board of directors. The transaction is planned to close in October 2021, subject to shareholder approval.
The Envelop team combines decades of insurance and capital markets experience with cyber security, engineering, artificial intelligence, and data analytics experts from deep tech enterprises like defence, aerospace, and energy.
Envelop Risk underwrites bespoke reinsurance for global insurance firms, differentiating its products through the application of advanced cyber analytics, enabling customers to manage their portfolios with greater precision. The firm can offer reinsurance capacity combined with pricing technology, policy wording, and claims support to introduce proven cyber insurance capabilities into maturing cyber insurance markets. Additionally, Envelop partners with cyber technology firms to launch embedded insurance solutions.
In less than 5 years, Envelop Risk has become a force in cyber reinsurance, capturing significant market share and competing with the giants in the industry. The firm has underwritten over $250 million of business since 2018, while comfortably besting industry benchmarks for performance.
Envelop Risk plans to use the proceeds from the round to expand operations in cyber reinsurance and cyber technology partnerships, while continuing to invest heavily in predictive analytics for assessing the likely economic consequences of cyber risks to commercial entities. As cyber has become a key trigger in nearly every business area, the firm intends to launch new products in adjacent areas of corporate risk over the next year. Critically, this raise will establish a hybrid balance sheet model; enabling the firm to deploy its own risk capital in alignment with existing partners.
Envelop Risk co-founder and CEO, Jonathan Spry, stated, “We are delighted to have reached such a significant milestone in our funding journey. This transaction will allow us to continue our leadership in data-driven specialty (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. We are all really excited to work with SoftBank Investment Advisers and together meet the huge opportunities that we see present in emerging and complex risk underwriting.”