On the heels of the Hippo financing round and our exploration of how private markets seem to be more conservative than public investors at the moment, we are asking a new question: are a group of insurtech startups underestimated?
Hippo - an insurtech startup focused on home insurance - has put together a $ 150 million round with a post-monetary valuation of $ 1.5 billion after raising the gross written premium to $ 270 million "in the past 12 months". At that assessment and the scale of the pre-adjustment premium, Hippo it is super cheap compared to Lemonade, another insurtech startup supported by a company that has just gone public.
The exchange explores startups, markets and money. You can read it every morning on Extra Crunch or receive it for free in your inbox. Sign up for The Exchange newsletter, which expires on Saturday starting July 25th.There is no need to relaunch Hippo's assessment and the way private markets have assessed the company. But our work yesterday gives us the opportunity to do some fun math on other players in the neoinsurance space, namely Root and MetroMile. Using the data accumulated from financial deposits and the valuation data from Pitchbook and Crunchbase, we can understand how much the two companies are worth using the current premium multiples of Hippo and Lemonade.
If you're unfamiliar, the startup cohort we're looking at raised over $ 1 billion as a group; VC really believe in them. How they are priced then and how they come out will help determine the results of many risk funds.
So, are other players in the startup insurance market cheap at their last private price compared to Lemonade and Hippo? Did their adventurers pay excessively? Let's find out.
