How We See the Future of Company Building at Mandalore Partners

At Mandalore Partners, we believe the future of company building is fundamentally different from what we've seen before. As we navigate through 2025, we're witnessing a paradigm shift that goes beyond traditional venture capital models, and we're positioning ourselves at the forefront of this transformation.

The old playbook of throwing capital at promising startups and hoping for exponential returns is not just outdated; it's counterproductive in today's complex business environment. We've observed that the most successful companies of the past five years weren't just well-funded, they were strategically guided, operationally supported, and deeply integrated into their target industries from day one.

Our Vision: Beyond Capital to Strategic Partnership

We've spent years observing the venture capital landscape, and frankly, we believe the traditional model is broken. The industry generated $149.2 billion in exit value in 2024, yet despite a $47 billion increase in overall deal value, we saw 936 fewer deals compared to the previous year. This tells us something profound: the market is demanding quality over quantity, strategic depth over transactional relationships.

At Mandalore, we see this as validation of our core thesis. The future belongs to companies that receive more than just capital, they need strategic expertise, operational support, and deep industry integration. This is why we've pioneered our Venture Capital-as-a-Service (VCaaS) model.

What We Mean by Venture Capital-as-a-Service

At Mandalore Partners, we don’t just write checks and step back, we embed ourselves as strategic partners through our VCaaS model, transforming how corporations build and scale innovation. Unlike traditional VCs, we stay hands-on from idea to market leadership, providing not only capital but deep regulatory expertise, industry networks, and operational insight. Our work with insurtech startups shows how this integrated approach turns potential into market dominance, proving that success hinges on more than just technology—it demands the right strategic guidance. With 93% of CEOs set to maintain or grow corporate venture investments in 2024, our model is exactly what forward-thinking companies need: a trusted partner to co-architect their future.

Our 6 Ss Framework: The Architecture of Success

We've developed what we call the 6 Ss model, our proprietary framework that has become the gold standard for successful company building in the modern era. This isn't theoretical; it's battle-tested across dozens of portfolio companies and multiple market cycles:

1.Strategy: We believe every successful company begins with a clear strategic vision aligned with market realities. Our data-driven approach ensures the startups we partner with address genuine market needs rather than pursuing solutions seeking problems.

2. Sourcing: We've built a global network and AI-powered sourcing capabilities that enable us to discover breakthrough technologies and visionary entrepreneurs before they become obvious opportunities. We're not followers, we are discoverers.

3. Scaling: Growth without foundation leads to failure. We provide operational expertise that helps companies build sustainable scaling mechanisms, from technology infrastructure to team development and market expansion strategies.

4. Synergy: We facilitate strategic partnerships that amplify growth potential and create competitive advantages. The most successful companies of the future will be those that create meaningful connections within their ecosystems.

5. Sustainability: Our investment thesis prioritizes companies building solutions for tomorrow's challenges. We consider long-term viability across financial, environmental, and social dimensions.

6. Success: We measure success not just in financial returns, but in creating lasting value for all stakeholders, entrepreneurs, corporations, and society at large.

How We're Leveraging Technology Convergence

We're particularly excited about the convergence of artificial intelligence, IoT, and robotics. These technologies aren't just changing how companies operate, they're fundamentally transforming how they're built.

Our portfolio companies are reimagining traditional industries through technological integration. We're backing robotics companies creating new paradigms for industrial automation and AI-powered startups revolutionizing risk assessment in insurance. What excites us most is witnessing the emergence of hybrid business models that combine digital innovation with deep industry expertise, creating defensible moats that traditional tech companies can't replicate.
This convergence represents more than technological advancement; it's the foundation of sustainable competitive advantage in the next decade.

Our Take on Market Corrections and Opportunities

The valuation corrections from 2021 highs have created what we see as unprecedented opportunities. While others view down rounds and unicorn devaluations as challenges, we see them as market efficiency improvements that favor strategic investors like us.

We're witnessing trends like co-investments, extensions, and significant valuation cuts, all of which play to our strengths as strategic partners who provide more than capital. When financial investors retreat, strategic value becomes even more important.

This market correction has also revealed something crucial: companies built on solid fundamentals with strong strategic partnerships weather economic storms better than those relying solely on financial backing. Our portfolio companies have demonstrated remarkable resilience during this period, with several achieving profitability ahead of schedule while their purely VC-backed competitors struggled with runway management.

What We Predict for the Next Decade

Based on our market position and portfolio insights, we see several key trends defining the next decade of company building:

• Ecosystem Integration: We believe successful companies will be those that seamlessly integrate into broader innovation ecosystems, creating value through partnerships rather than competition. This aligns perfectly with our VCaaS model. Companies that try to build everything in-house will find themselves outmaneuvered by those that strategically leverage ecosystem partnerships.

• Regulatory Proactivity: Companies that anticipate and shape regulatory frameworks rather than merely comply with them will gain significant competitive advantages. Our deep industry expertise positions us to help companies navigate this complexity. We've seen companies gain 18-month market advantages simply by understanding regulatory trends before their competitors.

• Stakeholder Capitalism: We're investing in companies that create value for all stakeholders, customers, employees, investors, and society, rather than optimizing for single metrics. This isn't just about ESG compliance; it's about building sustainable business models that can weather long-term market cycles.

• Global-Local Balance: Future companies will need to operate globally while maintaining deep local expertise and cultural sensitivity. Our network enables this balance, helping companies expand internationally while maintaining local market authenticity.

• AI-Human Collaboration: The future belongs to companies that enhance human capabilities rather than replace them. We're particularly excited about companies that use AI to augment human decision-making rather than automate it away entirely.

Our Competitive Advantage

What sets us apart is our unique position at the intersection of corporate strategy and entrepreneurial execution. We combine the best of corporate strategic thinking with entrepreneurial agility, creating sustainable competitive advantages for all stakeholders.

Our VCaaS model enables corporations to maintain focus on core operations while building breakthrough innovation capabilities. We're not just facilitating transactions, we're architecting the future of corporate innovation.

Why This Matters Now

The companies that will define the next decade are being built today. We're not just predicting this transformation, we're actively creating it through strategic partnerships with forward-thinking corporations and breakthrough technology companies.

Our approach transcends traditional venture capital limitations by creating a new category of value creation. We're building bridges between corporate resources and entrepreneurial innovation, enabling both to achieve outcomes neither could reach alone.

Our Commitment Moving Forward

At Mandalore Partners, we're committed to leading this transformation in company building. We're creating exceptional value for entrepreneurs, corporations, and society at large by reimagining how strategic capital, operational expertise, and market access can be combined.

The future of company building belongs to those who can successfully navigate the intersection of technology, strategy, and execution. We're not just participants in this evolution, we're architects of it.

Final Thoughts 

The venture capital industry is at a turning point, and Mandalore Partners is leading the way with a bold alternative to outdated, transactional investing. Through our Venture Capital as a Service (VCaaS) model, we combine the strategic resources of established corporations with the agility of innovative startups to create lasting value beyond traditional VC limitations. As markets demand quality, strategic depth, and sustainable growth, we’re building companies that leverage technology, industry expertise, and regulatory foresight to drive real impact. At Mandalore, we’re not just funding businesses, we’re designing the infrastructure for tomorrow’s economy. Join us to shape this transformation, not just react to it.

How Venture Studios Are Redefining Early-Stage Investment in Europe

In recent years, the European startup ecosystem has witnessed a quiet revolution,one led not by individual entrepreneurs or traditional venture capitalists, but by venture studios. Also known as startup studios, company builders, or venture builders, these organizations are fundamentally transforming how startups are launched, scaled, and funded.

From Berlin to Stockholm, venture studios are redefining early-stage investment by creating startups from scratch, combining operational expertise, in-house resources, and capital, and this model is gaining significant momentum across Europe.

What Is a Venture Studio?

A venture studio is a company that creates new startups. Unlike accelerators or incubators that support existing startups, venture studios build their own ventures. They identify business opportunities internally, develop prototypes, and assemble teams to lead the new companies.

They typically provide:

• Business ideas

• Early-stage funding

• Design and development resources

• Marketing and go-to-market strategies

• Recruitment of founding teams

The goal is to reduce startup risk and increase the chances of success by providing hands-on support from day one.

The Rise of Venture Studios in Europe

While the model originated in the U.S. (with pioneers like Idealab and Rocket Internet), Europe has rapidly embraced the venture studio approach, adapting it to local contexts.

Some notable venture studios in Europe include:

• Founders Factory (UK)

• Antler (Pan-European)

• eFounders (France & Belgium)

• Zebra Labs (Germany)

• Rainmaking (Denmark)

The rise of these studios aligns with Europe's growing appetite for innovation, digital transformation, and scalable tech-driven solutions,particularly in sectors like fintech, insurtech, and AI.

Why Venture Studios Are Gaining Ground

1. De-risking Early-Stage Investment

Traditional early-stage investment is risky. Many startups fail due to team mismatches, lack of product-market fit, or execution issues. Venture studios address these challenges by:

• Carefully selecting problems worth solving

• Testing ideas before significant capital is deployed

• Bringing in proven operational teams

• Providing institutional knowledge and repeatable processes

This de-risks early-stage investment, making it more attractive for investors who want exposure to innovation without shouldering all the volatility.

2. Combining Capital and Execution

Venture studios provide more than just money, they bring in execution. Studios typically invest capital alongside deep operational support in product development, marketing, legal, and hiring.

3. Faster Time-to-Market

With in-house resources and processes, studios can launch startups in months rather than years. Time is money in the startup world , and venture studios know how to save both.

4. Stronger Founder Matches

Studios recruit and match founders to ideas after validating those ideas. This approach ensures founders work on something with traction, not just personal passion. It increases the likelihood of founder-market fit.

Case Studies: Success Stories from European Venture Studios

eFounders: Reinventing the Future of Work

Paris-based eFounders has launched over 30 companies in the SaaS space, including:

• Spendesk – a corporate expense management platform

• Front – a shared inbox for teams

• Aircall – cloud-based phone systems

With a portfolio now valued at over $2 billion, eFounders is a prime example of how studios can build repeatable, scalable, and high-value businesses.

Founders Factory: Partnering with Corporates

Founders Factory, headquartered in London, takes a collaborative approach by partnering with corporates like Aviva, L’Oréal, and easyJet to co-create new ventures. This model blends industry expertise with startup agility, resulting in better distribution and exit opportunities.

Challenges for the Venture Studio Model

While the benefits are significant, venture studios also face key challenges:

1. High Operational Costs – Running a studio with multiple teams, developers, and resources is expensive.

2. Talent Bottlenecks – Finding experienced, entrepreneurial founders is not easy, especially for niche industries.

3. Ownership Structures – Studios often retain significant equity in startups they build, which can sometimes discourage later-stage investors or founders.

4. Scalability Issues – Unlike VCs who can deploy capital across dozens of deals, studios require hands-on involvement, making scaling slower.

Yet, many of these challenges are being overcome with better models, diversified funding sources, and growing demand for startup building.

The Future: What’s Next for Venture Studios in Europe?

The next decade looks bright for venture studios in Europe.

1. Niche Studios Will Emerge

Expect to see industry-specific venture studios in areas like:

• HealthTech

• ClimateTech

• InsurTech

• Food and Agriculture

These studios will leverage sector expertise and regulatory knowledge to build highly targeted solutions.

2. More Corporate-Backed Studios

Corporations looking to innovate outside their core business are increasingly turning to studios. This trend will grow as legacy firms in banking, insurance, and logistics face digital disruption.

3. Studio-VC Hybrids

Some studios are evolving into studio-VC hybrids, combining the company-building model with traditional fund investing. This allows them to back external founders while still building in-house ventures.

4. More Government and EU Support

As European governments continue to promote entrepreneurship and innovation, expect more support for venture studios via grants, incubator partnerships, and regulatory incentives.

Final Thoughts

Venture studios represent a powerful shift in how startups are built and funded in Europe. By reducing risk, providing hands-on support, and accelerating time-to-market, they are making early-stage investing more efficient and effective.

As innovation becomes a priority across sectors, and the demand for high-quality startups continues to rise, venture studios are well-positioned to become a central pillar of Europe’s startup ecosystem.

The Rise of Vertical Fintechs in 2025: Why Niche Is the New Scalable

In 2025, the financial technology (fintech) landscape is undergoing a dramatic transformation. As horizontal players that aim to serve everyone face challenges in personalization and regulation, vertical fintechs, startups that target specific customer segments or industries, are taking the lead. From fintechs focused on freelancers to those designed for farmers or immigrants, the niche is no longer small, it's the new scalable.

What Are Vertical Fintechs?

Vertical fintechs are companies that design their products, services, and experiences around the unique needs of a specific market segment. Unlike horizontal fintechs like PayPal or Revolut that aim to provide general services to all consumers, vertical players dive deep into the challenges, behavior, and expectations of a narrowly defined group.

Examples include:

• Lendtable, which focuses on helping low-income workers access employer-matching 401(k) contributions.

• Daylight, a digital bank designed for LGBTQ+ individuals.

• Till, a fintech solution for landlords and tenants to manage rent flexibility.

In 2025, the rise of these verticals reflects a broader trend: consumers and businesses are demanding more tailored financial services, and the companies that deliver them are gaining traction.

Why Vertical Fintechs Are Thriving in 2025

1. Deep Customer Understanding = Product-Market Fit

The biggest advantage of vertical fintechs lies in their laser-sharp focus. By honing in on one specific user group or industry, these companies build intimate knowledge of pain points. That insight leads to stronger product-market fit, better retention, and faster word-of-mouth adoption.

For example, a vertical fintech serving migrant workers can customize onboarding, offer remittance tools, and provide local-language support, all features that horizontal platforms might overlook.

2. Better Regulatory Navigation

Financial services are inherently regulated, and different industries or customer segments often have different compliance requirements. Vertical fintechs can more easily navigate the regulatory landscape by focusing on one set of rules. For instance, a fintech that builds solutions for cannabis businesses can specialize in meeting the unique banking and licensing laws that apply to that niche.

In 2025, tighter regulatory frameworks in Europe, the U.S., and Africa are making this advantage more visible. Governments are more receptive to solutions that cater to underserved communities without overgeneralizing.

3. Embedded Finance Opportunities

Vertical fintechs often integrate financial services directly into existing workflows of their target industries. This is known as embedded finance. Whether it's payment tools inside agricultural supply chains or credit lines within e-commerce marketplaces for artisans, fintechs are transforming into essential infrastructure rather than standalone apps.

By embedding financial services where users already spend time, vertical fintechs in 2025 are improving user adoption and building stickier platforms.

4. Capital Efficiency & Lower CAC

Horizontal fintechs often burn massive capital trying to attract a wide user base. In contrast, vertical fintechs enjoy lower customer acquisition costs (CAC) due to precise targeting and high referral rates within tight-knit communities.

In 2025, investors are paying more attention to capital efficiency amid shifting venture capital dynamics. That makes vertical fintechs attractive for funds focused on sustainable growth.

5. Strategic Partnerships & Ecosystem Building

Vertical fintechs are not just building apps, they’re constructing ecosystems. Many partner with nonprofits, trade associations, cooperatives, and even government agencies to deliver value at scale.

An example is a vertical fintech in East Africa that partners with local agricultural cooperatives to offer weather-indexed crop insurance. 

Case Study: Vertical Fintech in Agriculture

Take the agricultural sector. Farmers often face unique financial challenges such as seasonal income, lack of credit history, and  price fluctuation. In 2025, a new wave of fintech startups is emerging that offer:

• Digital lending tailored to planting and harvest cycles

• Crop insurance embedded into seed purchases

• Real-time commodity pricing through mobile apps

These products aren’t just financial tools, they’re lifeline.

Challenges to Scaling Vertically

While vertical fintechs offer tremendous upside, they also face some hurdles:

• Limited TAM (Total Addressable Market): Narrow focus can sometimes limit scalability if not properly planned.

• Dependency on Ecosystem Partners: Many vertical fintechs rely on third-party players (e.g., clinics, NGOs, schools) for customer distribution.

• Product Complexity: Building hyper-specific tools often leads to longer development cycles and complex support needs.

However, these are not deal-breakers. Many vertical fintechs are addressing these issues by expanding into adjacent verticals once they gain traction or by layering horizontal capabilities (e.g., payments, lending) on top of a strong vertical core.

The Future of Vertical Fintechs

As we move through 2025 and beyond, several trends suggest vertical fintechs are here to stay:

• AI and personalization will allow for even deeper tailoring of services to niche needs.

• Open banking regulations in Europe and parts of Africa are making it easier for vertical players to access and build on top of existing financial infrastructure.

• Corporate venture studios are also starting to incubate vertical fintechs, seeing them as quicker paths to innovation in legacy industries like health, construction, or logistics.

Final Thought

In 2025, the fintech game is no longer just about size or volume, it’s about depth, relevance, and impact. Vertical fintechs are proving that when it comes to financial innovation, the riches truly lie in the niches. By serving specific audiences with empathy and precision, they are redefining what scalability means in financial services. For founders, investors, and corporates alike, vertical is not just a strategy, it’s the future.

Investing in Artificial Intelligence: Key Trends for Funds

Methodology: A Fund-Focused View on AI Investment Dynamics

This article draws from market reports, fund manager insights, and AI ecosystem analyses to outline the main trends shaping how venture, growth, and corporate funds are investing in artificial intelligence today. We look at deal activity, sector focus, and strategic themes guiding capital allocation.

In Brief: What Funds Need to Know

• AI deal volume remains strong, with funds focusing on core infrastructure, applied AI, and ethical frameworks.

• Large funds and corporate VCs are increasingly backing AI tools that reshape entire industries.

• Geopolitics, regulation, and responsible AI principles are playing a bigger role in diligence.

• The next wave of winners may emerge from vertical AI not general-purpose models.

AI Investment Is Maturing But the Opportunity Remains Huge

Over the past decade, funds have steadily increased their exposure to artificial intelligence. From early bets on core machine learning platforms to today’s more refined focus on vertical applications (healthcare AI, legal tech AI, climate AI), the landscape has evolved.

AI deal activity remains resilient even in cautious markets, as funds seek companies offering real, scalable applications rather than AI hype.

According to PitchBook, AI and machine learning startups captured over $50 billion in venture funding globally in 2024, with enterprise AI infrastructure and applied AI solutions leading the way.

Key Trend 1: From General AI to Vertical AI

• Fund managers are shifting attention from general-purpose AI tools to sector-specific solutions. Why?

• Vertical AI startups typically show faster paths to product-market fit.

• Customers value AI embedded in their existing workflows (e.g., legal document review, clinical trial analysis).

• Regulatory clarity is stronger in narrow-use cases.

Funds investing in AI are looking for companies that deeply understand their end markets, not just ones building horizontal tools.

Key Trend 2: Responsible AI Moves Front and Center

Ethical AI isn’t just a discussion point anymore, it's a diligence priority.

LPs increasingly expect funds to assess AI safety, bias mitigation, and explainability during investment screening. Startups offering transparency features (e.g., model audits, bias dashboards) are gaining an edge in fundraising.

Funds that position themselves as champions of responsible AI will not only de-risk portfolios but also build brand credibility with partners and regulators.

Key Trend 3: Corporate Venture Capital Is Leading in AI Scaling

Corporate funds are playing a growing role in AI funding rounds especially at the growth stage. Why?

• AI solutions often require integration with large enterprise systems.

• Corporate VCs provide go-to-market pathways AI startups need to scale.

• Strategic investors are focused on AI that directly augments their core business lines.

We see funds co-investing alongside corporates in areas like AI-driven cybersecurity, supply chain optimization, and predictive analytics.

Final Thought: What’s Next for AI-Focused Funds?

The AI gold rush is shifting from model-building to real-world deployment. Funds that succeed will:

• Back founders solving specific industry problems.

• Prioritize responsible, explainable AI.

• Align with partners who can accelerate adoption at scale.

For investors, artificial intelligence isn’t just a theme, it's becoming an essential part of any modern portfolio.

Is There Still Room for Disruption in the European Insurance Market?

The European insurance landscape stands at a fascinating crossroads. While traditional players have dominated for centuries, a new wave of technological innovation is reshaping the very foundations of how insurance operates. The question isn't whether disruption is possible, it's whether incumbents will adapt fast enough to survive the transformation already underway.

The Digital Revolution is Just Beginning

The numbers tell a compelling story. The insurance technology market size in Europe is estimated to grow by USD 19.72 billion from 2024-2028, according to Technavio, with the market estimated to grow at a CAGR of almost 36.5% during the forecast period. This explosive growth signals that we're witnessing the early stages of a technological revolution, not its conclusion.

What makes this particularly striking is the stark contrast with traditional growth patterns. While the broader European insurance market maintains steady single-digit growth, insurtech is expanding at rates that would make Silicon Valley envious. This disparity reveals massive opportunities for companies willing to embrace digital-first approaches.

Where Traditional Models Show Vulnerability

European insurance has historically relied on intermediaries, complex underwriting processes, and lengthy claim settlements. These legacy systems create friction points that modern consumers increasingly refuse to tolerate. Consider the average home insurance claim in Germany, which can take 30-45 days to process through traditional channels, compared to digital-first insurers who promise resolution within 48 hours.

• The protection gap presents another compelling opportunity. Climate change has created new risks that traditional models struggle to assess and price accurately. The insurance industry is transforming, driven by new tech, tax laws, and expectations, yet many European insurers remain reactive rather than proactive in addressing emerging risks like cyber threats and extreme weather events.

• Young Europeans represent perhaps the largest untapped market. Digital natives aged 25-35 show significantly lower insurance penetration rates than previous generations at the same age, not because they don't need coverage, but because existing products don't align with their lifestyle and expectations. They demand instant quotes, transparent pricing, and seamless mobile experiences, areas where traditional insurers often fall short.

Successful Disruption Models Already Emerging

Several European companies have proven that disruption isn't just possible, it's profitable. Lemonade, while originally American, has successfully expanded into European markets by offering renters and homeowners insurance through an AI-powered platform that can process claims in seconds rather than weeks.

• Sweden's Hedvig has revolutionized home and contents insurance by eliminating deductibles and offering transparent, flat-rate pricing. Their model shows how removing traditional insurance complexity can attract younger demographics who previously avoided coverage altogether.

• In the UK, Zego has transformed commercial vehicle insurance by providing flexible, pay-as-you-go coverage for delivery drivers and ride-share operators. This micro-insurance model addresses the gig economy's unique needs, a market segment traditional insurers largely ignored.

Technology as the Great Enabler

Artificial intelligence and machine learning have matured to the point where they can now handle tasks that previously required human expertise. Modern AI can analyze satellite imagery to assess property damage, process natural language to understand claim descriptions, and detect fraud patterns with greater accuracy than human investigators.

• IoT devices create unprecedented data streams that enable real-time risk assessment. A smart home system can prevent water damage by automatically shutting off pipes when leaks are detected, then instantly notify insurers to update coverage terms. This shift from reactive claim processing to proactive risk prevention represents a fundamental business model transformation.

• Blockchain technology, while still emerging, promises to streamline multi-party insurance transactions and create tamper-proof claim histories. European regulatory frameworks like GDPR actually position the region well for blockchain adoption, as the technology aligns with data sovereignty requirements.

Regulatory Environment Creates Opportunities

European insurance regulation, often viewed as constraining innovation, actually creates moats for disruptors who can navigate compliance effectively. Solvency II requirements, while complex, establish trust frameworks that tech-savvy companies can leverage more efficiently than traditional insurers burdened by legacy systems.

• The EU's Digital Single Market strategy actively encourages cross-border insurance innovation, making it easier for successful models to scale across the continent. This regulatory support contrasts sharply with the fragmented approach in other regions, giving European disruptors a significant advantage.

• Open Banking regulations have also created precedents for data sharing that could extend to insurance. When customers can seamlessly share their financial and behavioral data with insurers, it enables more accurate risk assessment and personalized pricing, core advantages for innovative players.

The Path Forward

The European insurance market isn't just ripe for disruption, it's demanding it. Consumer expectations, technological capabilities, and regulatory frameworks have aligned to create an environment where innovative approaches can thrive. While investments in insurtech saw both deal volume and funding decline in 2023, this consolidation phase often precedes breakthrough innovations as the strongest players emerge.

The companies that will define the next decade won't be those trying to digitize existing processes, but those reimagining insurance from first principles. They'll use data to predict and prevent losses rather than just compensate for them. They'll create products that adapt to individual lifestyles rather than forcing customers into standardized categories. Most importantly, they'll build trust through transparency and speed rather than complexity and tradition.

The question facing European insurance isn't whether disruption will continue, it's whether established players will lead the transformation or be swept aside by it. For entrepreneurs and innovators, the answer is clear: the opportunities have never been greater, and the time to act is now.

Top 5 Insurtech Startups to Watch in 2025

The insurance technology sector is experiencing unprecedented growth, with artificial intelligence driving a fundamental transformation across the industry. According to Beinsure Data, 35 insurtech unicorns (>$1 bn) raised up to 2025 more than $20.2 bn venture capital with cumulative valuation ~$106 bn. More remarkably, the global artificial intelligence (AI) in insurance market size is projected to hit around USD 141.44 billion by 2034 from USD 8.13 billion in 2024 with a CAGR of 33.06%.

This explosive growth signals a paradigm shift where traditional insurance models are being disrupted by data-driven, customer-centric approaches. Here are the five insurtech startups positioned to lead this transformation in 2025.

1. Shift Technology: Revolutionizing Fraud Detection with AI

Shift Technology stands at the forefront of AI-powered insurance solutions, specializing in fraud detection and claims automation. The company's advanced AI solutions enable real-time fraud detection and automated claims handling, significantly boosting efficiency, accuracy, and cost savings for insurance providers worldwide.

What sets Shift Technology apart is their sophisticated machine learning algorithms that can identify fraudulent claims patterns in real-time, reducing false positives by up to 70% compared to traditional methods. Their platform processes over 78 million claims annually across 300+ insurance organizations globally, demonstrating the scalability and reliability of their AI infrastructure.

The company's recent expansion into predictive analytics for underwriting represents a natural evolution of their fraud detection capabilities, positioning them to capture additional market share in the risk assessment segment.

2. Altana AI: Leading the Equity Efficiency Revolution

Altana AI and Next Insurance lead among the winners, each having raised $1.6M in equity funding per employee. This remarkable capital efficiency metric highlights Altana AI's lean operational model and strong investor confidence in their technology platform.

Altana AI focuses on supply chain risk intelligence, providing insurers with unprecedented visibility into global trade networks and potential risk factors. Their AI-powered platform analyzes millions of supply chain data points to predict disruptions, enabling insurers to price policies more accurately and reduce claims volatility.

The startup's proprietary algorithms can identify hidden connections between suppliers, manufacturers, and distributors, creating comprehensive risk profiles that traditional assessment methods miss. This capability is particularly valuable for commercial insurance lines, where supply chain disruptions can trigger massive claims events.

3. INARI: Blockchain-Powered Insurance Management

Spanish startup INARI provides a cloud-based blockchain platform for end-to-end insurance management. The platform's machine learning (ML) algorithms utilize a broad variety of insurance data to provide automated insurance operations, from quotation to portfolio management.

INARI's innovative approach combines blockchain transparency with AI efficiency, creating a seamless insurance ecosystem that reduces operational costs by up to 40%. Their platform enables real-time policy adjustments based on risk changes, automated claims processing, and transparent premium calculations.

The company's focus on emerging markets, particularly in Latin America and Southeast Asia, positions them to capture the growing demand for digital insurance solutions in regions with traditionally underserved populations. Their mobile-first approach and multilingual capabilities make insurance accessible to previously untapped demographic segments.

4. Coterie Insurance: Small Business Insurance Reimagined

Coterie Insurance is a pioneering insurtech startup that is revolutionizing the way small businesses access and manage insurance. Founded in 2018, Coterie leverages cutting-edge technology and data analytics to streamline the insurance process.

• Coterie's AI-driven platform can generate customized business insurance quotes in under 60 seconds, compared to the industry average of 2-3 days. Their technology analyzes over 500 data points per business, including social media presence, online reviews, and financial indicators, to create accurate risk profiles without lengthy application processes.

• The startup's focus on underserved small business segments, particularly in professional services and e-commerce, addresses a $50+ billion market opportunity. Their API-first architecture enables seamless integration with business management platforms, creating embedded insurance experiences that feel natural to modern entrepreneurs.

5. Loovi: Vehicle Intelligence and Fleet Management

Brazilian insurtech Loovi represents the next generation of specialized insurance technology. Brazilian insurtech Loovi raised US$9 million in funding from prominent investors Marçal Holding and Oliveira Participações. Specialising in vehicle tracking, security, theft warranty, and fleet management services, Loovi, which was founded by Quézide Cunha and William Naor, aims to transform vehicle insurance through IoT integration and real-time monitoring.

• Loovi's comprehensive platform combines telematics, AI-powered risk assessment, and proactive theft prevention to reduce vehicle insurance claims by up to 35%. Their IoT sensors provide real-time vehicle health monitoring, predictive maintenance alerts, and immediate theft response capabilities.

• The company's expansion into fleet management services creates additional revenue streams while providing deeper insights into commercial vehicle operations. This data advantage enables more accurate pricing models and proactive risk management strategies.

The Agentic AI Revolution

• AI adoption will climb in 2025, with agentic AI platforms becoming essential. These systems will handle complex tasks independently alongside human workers, redefining workflows and client interactions. This technological evolution represents a fundamental shift from reactive to proactive insurance services.

• Agentic AI systems will autonomously adjust policies based on real-time risk changes, initiate claims processing upon detecting incidents, and provide personalized risk mitigation recommendations to policyholders. This level of automation and personalization will become the new standard for competitive insurtech companies.

Market Outlook and Investment Trends

• The insurtech sector's resilience is evident in recent funding patterns. Q3 2024 closed with an investment in insurtech of $3.2 bn, 7% less than in 2023. However, the trend is positive and suggests a rebound in funding activity as investors recognize the long-term potential of AI-powered insurance solutions.

• Forty-one of the 50 winners have a CB Insights Mosaic score, a proprietary measure of private company health and growth potential, of at least 700 out of 1,000, indicating strong fundamentals across leading insurtech companies.

Final Thoughts 

The insurtech landscape in 2025 is characterized by AI-first platforms that prioritize customer experience, operational efficiency, and predictive capabilities. These five startups represent different aspects of the insurance value chain transformation: fraud detection, risk intelligence, blockchain integration, small business solutions, and IoT-enabled vehicle services. The future of insurance lies in the hands of these innovative startups that understand the power of data, artificial intelligence, and customer-centric design. As the industry continues its digital transformation, these companies are not just adapting to change, they're driving it.

Is AI Transforming Venture Capital?

Methodology: Mapping AI’s Impact Across the VC Value Chain

This analysis draws from recent VC investment trends, AI tooling adoption across fund operations, startup market behavior, and published reports from leading firms in venture and enterprise AI. We focus on identifying how artificial intelligence influences sourcing, due diligence, portfolio support, and decision-making within venture capital firms, and whether it’s enhancing efficiency or replacing core human functions.

In Brief: What’s Changing?

• AI tools are being widely adopted for deal sourcing, screening, and due diligence.

• LPs are showing increased interest in VC funds with a defined AI advantage.

• New firms are emerging with AI-built investment platforms, offering algorithmically driven portfolios.

• Portfolio support is becoming more data-informed, from hiring intelligence to pricing optimization.

• The human element of venture capital: relationships, trust, judgment, remains irreplaceable, but it’s being redefined

Rethinking Venture Capital: Why Evolution Isn’t Optional

While venture capital has long been considered a relationship-driven business, it’s also a sector rich in data, startup metrics, founder backgrounds, market dynamics, and exit multiples. As these datasets grow, VCs are increasingly turning to AI-powered platforms to extract insight, surface opportunities, and reduce operational burden.

Tools like Affinity, PitchBook’s AI modules, and custom GPT-based systems are now used to automate initial sourcing and provide predictive scoring on potential investments. Some firms, like SignalFire and Zetta, have fully integrated AI into their scouting stack.

“What used to take weeks of founder outreach and CRM updates can now be done in hours,” says one GP at a data-native early-stage fund.

AI-Driven Deal Flow: Filtering Noise with Signal

One of AI’s most impactful applications has been in the triage of inbound deal flow. Firms now deploy models that rank incoming decks and emails based on historic performance patterns, investment thesis fit, and keyword matching.

Some early-stage firms are even experimenting with LLM-powered memo generation, allowing analysts to summarize founder calls and create investment memos in minutes rather than days.

However, this is not about removing human insight; it's about freeing teams to focus on founder evaluation, industry diligence, and partnership building.

Due Diligence Gets Smarter and Faster

Diligence used to be slow, expensive, and heavily manual. With AI, venture teams now automate:

• Market sizing analysis

• Competitor landscape mapping

• Sentiment tracking across social/web

• Technical benchmarking using code or API audits

Firms like a16z and FirstMark have invested in internal tools that run structured diligence pipelines, combining data scraping with analyst review. AI makes the process leaner without compromising depth.

Still, human interpretation, especially for early-stage, pre-revenue bets, remains essential.

AI at the Portfolio Level: Coaching and Insight at Scale

Beyond the investment decision, AI is reshaping how firms support their startups. From hiring intelligence (e.g,. identifying likely candidate attrition) to churn risk detection and customer segmentation, venture teams are leveraging platforms to give founders smarter feedback, faster.

Portfolio dashboards with embedded AI modules offer near real-time insights, transforming GPs into strategic advisors supported by robust tooling.
Some emerging fund models even offer “productized venture support”, giving founders access to plug-and-play AI toolkits as a default benefit of the partnership.

What AI Won’t Replace

For all its analytical power, AI has limitations. Venture remains a trust business. Relationship building, founder empathy, and strategic thinking still matter deeply, particularly at the earliest stages, where conviction often precedes data.

The winning firms in this new landscape won’t be the ones that replace people with bots, but those that use AI to scale what humans do best: pattern recognition, intuition, and judgment.

Final Thought: AI Is Reshaping Venture Quietly and Permanently

AI is not replacing venture capital but it is changing the pace, process, and precision with which it’s practiced. Firms embracing this shift are seeing faster cycles, smarter insights, and a competitive edge in both sourcing and portfolio management. Those resisting risk falling behind not because they can’t find deals, but because they’re spending time where AI can already add value. The future of VC isn’t fully automated. It’s augmented and the transformation is already well underway.

Why Do Venture Studios Attract Investors?

Methodology: Understanding Investor Interest Through Models, Outcomes, and Market Signals

This article is based on an analysis of venture studio performance data, institutional investor trends, and commentary from founders and fund managers across Europe and the U.S. It examines why LPs and corporate partners are increasingly backing the venture studio model, and how it aligns with capital-efficient innovation and risk mitigation.

In Brief: What’s Driving Interest?

• Venture studios reduce startup risk through internal ideation, shared operations, and early product-market fit support.

• Investors are drawn to the repeatable nature of the studio model and its portfolio optionality.

• Studios often deliver higher ownership stakes, clearer paths to scale, and shorter time to value realization.

• The model aligns well with corporate innovation strategies and emerging markets.

• Studio economics are evolving to appeal to both traditional LPs and hybrid backers.

The Studio Model Offers a More Controlled Startup Building Process

Unlike traditional VCs that back external founders, venture studios originate and launch companies in-house, providing founding teams, initial capital, and operational resources. From day one, the studio has owned a significant equity position and maintains strategic oversight.

For investors, this structure reduces early-stage chaos. Ideas are pressure-tested before teams are formed. Hiring, product development, and GTM are handled with experienced operators.

This disciplined approach to entrepreneurship improves the odds of success and makes capital deployment more predictable.

Portfolio Construction: More Shots on Goal, Less Waste

Venture studios are built for portfolio logic. Instead of betting big on a single founder or product, they launch multiple companies in parallel, iterate fast, and shut down underperformers early.

For investors, this reduces downside risk. Studios can reallocate capital, reuse talent, and recycle insights across ventures. A single studio may create 10–20 startups over a few years, all from a shared knowledge base and infrastructure.

This portfolio optionality is appealing to LPs looking for high upside with downside protection.

Ownership and Exit Potential Are More Attractive

Because studios are co-founders, they often retain 25–50% equity stakes in their startups at launch, significantly higher than typical VC-backed models.

This concentrated ownership means that when a studio-backed company succeeds, the returns are larger and more direct. For investors in the studio itself, this structure translates into more meaningful exit participation per win.

Moreover, studios often guide startups to exit-readiness faster. With shared legal, hiring, and product resources, time-to-Series A (and beyond) is compressed.

Alignment with Corporate and Institutional Capital

Studios are also uniquely suited for corporate venture partnerships and family office co-building.

Corporates like the model because it offers them a front-row seat to innovation without the risk of internal R&D. For family offices, studios provide a way to co-create meaningful, values-aligned businesses without needing to incubate from scratch.

The model’s transparency, governance, and strategy-first approach make it easier to manage risk while fostering long-term engagement.

Studios Are Building in Emerging and Underserved Markets

Studios are increasingly being used to catalyze innovation in emerging markets, where capital is scarce but talent is abundant.

By controlling startup formation centrally, studios reduce the operational risk of building in fragmented or early ecosystems. They also attract LPs interested in impact investing, climate solutions, and regional development without sacrificing returns.

This makes the model a compelling vehicle for mission-aligned funds, development finance, and global innovation networks.

Final Thought: Studios Offer a New Kind of Investor Alignment

The rise of venture studios isn’t just about better startup outcomes. It’s about better alignment between capital, creators, and customers.

Studios combine the creativity of entrepreneurship with the structure of private equity. For investors, this means fewer surprises, more visibility, and a clearer path from idea to exit.

As more LPs rethink how they allocate to early-stage innovation, the venture studio model will continue to gain traction not as a trend, but as a tool for sustainable, scalable company building.

How AI is Changing the Underwriting Process in B2B Insurance

The B2B insurance landscape is experiencing a seismic transformation. Traditional underwriting, once dominated by manual processes and lengthy decision cycles, is giving way to a new era powered by artificial intelligence. This shift isn't just evolutionary, it's revolutionary, fundamentally changing how insurers assess risk, price policies, and serve their commercial clients.

The Numbers Don't Lie: A Market in Rapid Transformation

The statistics paint a compelling picture of AI's meteoric rise in insurance. The global AI in the insurance market, valued at $8.13 billion in 2024, is projected to explode to $141.44 billion by 2034, representing a staggering 33.06% compound annual growth rate. This isn't just growth; it's a complete market reimagining. What makes this transformation even more remarkable is its pace of adoption. Recent industry surveys reveal that 77% of insurance companies are now in some stage of AI adoption across their value chain, a dramatic leap from just 61% in 2023. Among life and annuity insurers, the adoption rate soars even higher, with 82% having implemented generative AI in one or more business functions.

For underwriting specifically, the impact is particularly pronounced. AI-assisted underwriting has emerged as one of the largest use case segments for AI in insurance, with insurers reporting up to 40% improvement in underwriting efficiency when deploying AI tools.

Beyond Speed: The Multifaceted Revolution

The transformation extends far beyond simple automation. Modern AI systems are reshaping every aspect of the B2B underwriting process, creating value that compounds across multiple dimensions.

Risk Assessment Precision: Traditional underwriting relied heavily on historical data and underwriter intuition. Today's AI systems analyze vast datasets from connected devices, satellite imagery, social media, and IoT sensors. With experts estimating one trillion connected devices by 2025, the data available for risk assessment is expanding exponentially. This data deluge enables insurers to understand their commercial clients more deeply than ever before, resulting in pricing accuracy that was previously impossible.

Fraud Detection and Pattern Recognition: AI's pattern recognition capabilities have revolutionized fraud detection in commercial lines. By identifying irregular patterns and reducing subjective biases, AI systems can spot potential fraud that human underwriters might miss. This enhanced detection capability translates directly to improved loss ratios, with some insurers reporting decreases of 1-3% through intelligent recommendations on optimal application approval and quoting decisions.

Real-Time Decision Making: The traditional underwriting process often stretched across weeks or months for complex commercial risks. AI has compressed this timeline dramatically, enabling real-time analysis of applications and instant decision-making for many types of coverage. This speed advantage is particularly crucial in B2B markets where businesses need coverage quickly to support their operations.

The Technology Stack Driving Change

The AI revolution in B2B insurance underwriting isn't powered by a single technology but rather by a sophisticated ecosystem of interconnected tools and platforms. Machine learning algorithms process historical claims data to identify risk patterns, while natural language processing systems extract insights from unstructured documents like financial statements and business plans.

Computer vision technology analyzes satellite imagery and drone footage to assess property risks, while predictive analytics models forecast potential claims scenarios. Integration platforms connect these AI tools with existing underwriting systems, creating seamless workflows that enhance rather than replace human expertise.

The sophistication of these systems continues to evolve rapidly. Today's AI underwriting platforms can process multiple data sources simultaneously, cross-referencing business registration information, financial health indicators, industry risk factors, and real-time market conditions to generate comprehensive risk profiles within minutes.

Industry Leaders Driving Innovation

The competitive landscape is being reshaped by companies that successfully harness AI's potential. Planck, for example, raised $71 million in funding to develop its underwriting AI product, which now operates globally. Their platform demonstrates how specialized AI solutions can transform traditional underwriting approaches.

Similarly, major data companies like Experian are developing AI-powered solutions specifically for commercial insurance. Their "Hazard Tags" system provides comprehensive profiles of five million UK businesses, enabling insurers to make more informed underwriting decisions at scale.

The Path Forward: Challenges and Opportunities

Despite the remarkable progress, the journey toward AI-driven underwriting isn't without obstacles. Data quality remains a persistent challenge, as AI systems are only as good as the information they process. Regulatory compliance adds another layer of complexity, particularly in jurisdictions with strict data protection laws.

The human element remains crucial. While AI excels at processing vast amounts of data and identifying patterns, human underwriters bring contextual understanding and relationship management skills that complement AI capabilities. The most successful implementations combine AI's analytical power with human expertise and judgment.

Looking ahead, the integration of AI in B2B insurance underwriting will likely deepen rather than simply expand. As AI systems become more sophisticated and data sources multiply, underwriters will gain unprecedented insights into commercial risks. The question isn't whether AI will transform B2B insurance underwriting; it's how quickly and comprehensively this transformation will occur.

Final Thought

The transformation of B2B insurance underwriting through AI represents more than technological advancement, it's a fundamental shift toward data-driven, precise, and efficient risk assessment. With 36% of insurance technology experts identifying AI as their top innovation priority for 2025, the momentum behind this transformation continues to build.

For B2B insurers, the choice is clear: embrace AI-driven underwriting or risk being left behind by competitors who have harnessed its power. The insurers who successfully integrate AI into their underwriting processes won't just survive this transformation, they'll thrive in the new landscape of precision, speed, and insight that defines the future of commercial insurance.

The numbers, the technology, and the market momentum all point in the same direction. AI isn't just changing B2B insurance underwriting, it's revolutionizing it, one algorithm at a time.

The Next Generation of Insurtech Founders: Trends to Watch in Europe

Europe's  landscape is experiencing a remarkable transformation. While global funding may have cooled from pandemic highs, a new generation of founders is emerging with bold visions that could reshape the continent's €1.4 trillion insurance market. These entrepreneurs aren't just digitizing old processes, they're reimagining insurance from the ground up.

The Numbers Tell a Story of Resilience

Despite broader market challenges, Europeans are showing impressive resilience. Europe captured $1.1 billion in  investment in 2024, positioning itself as the second-largest market globally after the United States. More telling is the quality over quantity approach: the median early-stage  deal size has reached a record high, increasing from $2.5M in 2023 to $4M in 2024.

This isn't just about bigger checks, it signals investor confidence in European founders' ability to build substantial businesses. The UK leads the charge, but Berlin, Paris, and Amsterdam are emerging as serious contenders, each developing distinct specializations that reflect local market needs and regulatory environments.

AI-First Founders: Beyond the Hype

The most compelling trend among Europe's new  founders is their AI-native approach. Unlike previous generations who retrofitted AI into existing processes, these entrepreneurs are building from first principles.  that raised funding in 2024 are growing headcounts faster than others, by a median of 20% over the last 12 months, with many of these high-growth companies being AI-centric.

Take Berlin-based INSRD, which raised €500k in pre-seed funding in early 2024. Founder Stefan Balg, a serial entrepreneur with over a decade of experience, isn't just digitizing business insurance, he's using AI to predict and prevent risks before they materialize. This proactive approach represents a fundamental shift from reactive claims processing to predictive risk management.

The AI trend extends beyond risk assessment. European founders are leveraging machine learning for personalized pricing, automated underwriting, and real-time policy adjustments. This isn't theoretical, it's happening now, with tangible results in customer acquisition costs and retention rates.

The Embedded Insurance Revolution

Perhaps the most significant opportunity lies in embedded insurance, where coverage becomes seamlessly integrated into other products and services. Berlin's Embea exemplifies this trend, having raised €4 million to build a pan-European embedded life insurance platform. The company's approach reflects a broader understanding that modern consumers expect insurance to be invisible until needed.

This embedded approach is particularly relevant in Europe's fragmented market, where regulatory differences across countries have historically created barriers. Smart founders are turning this challenge into an advantage, building platforms that can adapt to local requirements while maintaining operational efficiency across borders.

The embedded model also addresses a critical pain point: insurance literacy. By integrating coverage into familiar purchase journeys, whether buying a phone, booking travel, or starting a business, these founders are making insurance more accessible and relevant to younger demographics who traditionally under-insure.

Climate-Conscious Innovation

European insurtech founders are uniquely positioned to lead in climate-related insurance innovation. Extreme weather drives insured losses 70% above historical norms, creating both challenges and opportunities for innovative coverage models.

Forward-thinking founders are developing parametric insurance products that pay out automatically when specific weather conditions are met, eliminating lengthy claims processes. Others are creating new coverage categories for climate adaptation technologies, renewable energy installations, and carbon credit portfolios.

This climate focus isn't just about risk management, it's about enabling the green transition. European founders understand that insurance can be a catalyst for sustainable business practices, not just a safety net.

Regulatory Navigation as Competitive Advantage

While many view Europe's regulatory complexity as a barrier, the smartest founders see it as a moat. Those who master compliance across multiple jurisdictions create defensible positions that are difficult for later entrants to replicate.

The regulatory landscape is also evolving in founders' favor. Open banking regulations have paved the way for open insurance initiatives, creating opportunities for data-driven underwriting and seamless policy management. Forward-thinking founders are building compliance-by-design approaches that will position them well as regulations continue to evolve.

The Funding Reality Check

The funding environment requires founders to be more capital-efficient than their predecessors. Investments are down, both in the number of deals inked (-32%) and euros invested (-54%) compared to peak years. However, this constraint is breeding innovation.

Today's European insurtech founders are focusing on faster paths to profitability, often through partnerships with traditional insurers rather than trying to replace them entirely. This collaborative approach is proving more sustainable than the disruption-focused strategies of earlier insurtech waves.

The successful founders are also more sophisticated about timing their fundraising, often achieving significant milestones with smaller initial rounds before pursuing larger growth capital. This approach builds stronger businesses and more attractive investment cases.

Demographic Shifts Drive Innovation

Europe's aging population and changing work patterns create unique opportunities for innovative insurance products. Gig economy workers, remote professionals, and portfolio careers all require flexible insurance solutions that traditional products can't address.

Smart founders are building usage-based models that align cost with actual risk exposure. Whether it's pay-per-mile car insurance for occasional drivers or project-based professional indemnity for freelancers, these products reflect how people actually live and work.

The generational shift is equally important. Digital natives expect insurance to be as intuitive as their banking or shopping apps. Founders who nail the user experience have significant advantages in customer acquisition and retention.

Looking Ahead: The Platform Play

The most ambitious European founders are building platforms rather than products. They understand that the real opportunity lies in becoming the infrastructure layer for insurance across multiple verticals and geographies.

This platform approach leverages Europe's strengths: regulatory expertise, technical talent, and market diversity. By building once and deploying many times across different markets and use cases, these founders can achieve the scale needed to compete globally.

The Next Chapter

Europe's next generation of founders operates in a more mature but still rapidly evolving market. They combine the technical sophistication of their predecessors with a deeper understanding of regulatory realities and customer needs. The most successful won't just build better insurance companies, they'll create entirely new categories of risk management that we can't yet imagine. In a continent where innovation meets regulation, where tradition confronts disruption, these founders are writing the next chapter of European.

The trends are clear: AI-native thinking, embedded experiences, climate consciousness, regulatory savvy, and platform approaches. The founders who master these elements while maintaining capital discipline will define European insurtech's next decade.

For investors, partners, and industry observers, the message is equally clear: the most interesting European stories are still being written.

AI in Insurance: From Claims Automation to Risk Prediction

The insurance industry stands at the precipice of a technological revolution. What once required weeks of manual processing, stacks of paperwork, and armies of adjusters can now be accomplished in hours through artificial intelligence. The transformation isn't just impressive, it's reshaping the entire economic landscape of risk management.

The Numbers Tell the Story

The statistics are staggering. The global artificial intelligence (AI) in insurance market size is projected to hit around USD 141.44 billion by 2034 from USD 8.13 billion in 2024 with a CAGR of 33.06%. This exponential growth reflects more than just technological adoption, it represents a fundamental shift in how insurers operate, compete, and serve customers.

By 2024, 80% of insurance executives believe that AI-driven automation will be a key factor in improving efficiency and customer engagement. This isn't wishful thinking; it's a strategic necessity in an increasingly competitive marketplace where customer expectations for speed and service continue to rise.

 Claims Processing: The Speed Revolution

Perhaps nowhere is AI's impact more dramatic than in claims processing. Traditional claims handling, with its lengthy investigations and manual reviews, is being transformed into streamlined, automated workflows. AI automates the traditionally slow claims processing, reducing the time from weeks to just a few days or even hours.

Consider the practical implications: a fender-bender that once required multiple phone calls, adjuster visits, and weeks of processing can now be handled through a smartphone app that uses computer vision to assess damage, cross-references repair costs, and approve payment, all within minutes of the incident.

Claims processing in 2030 remains a primary function of carriers, but more than half of claims activities have been replaced by automation. McKinsey's research suggests we're already well on our way to this future, with advanced algorithms handling initial claims routing and IoT sensors providing real-time data capture through technologies like drones.

The customer experience transformation is equally significant. AI-powered chatbots and virtual assistants are used to provide 24/7 support to customers, helping them file claims and answer queries. This means policyholders no longer need to wait for business hours or navigate complex phone trees; assistance is available instantly, whenever disaster strikes.

 The Fraud Detection Arms Race

Insurance fraud represents a massive financial drain on the industry, with insurance fraud costs $6 billion annually, and insurers lose at least 10% of their premium collection to insurance fraud. But AI is leveling the playing field in unprecedented ways.

• The potential savings are enormous. Deloitte predicts that, by implementing AI-driven technologies across the claims life cycle and integrating real-time analysis from multiple modalities, P&C insurers could reduce fraudulent claims and save between US$80 billion and US$160 billion by 2032.

• However, the challenge is evolving rapidly. Insurance fraud increased by 19% from synthetic voice attacks in 2024, with sophisticated AI-generated deep fakes and voice cloning creating new categories of fraud that traditional detection methods simply cannot identify.

• The response from insurers has been equally sophisticated. AI systems now analyze patterns across vast datasets, identifying subtle anomalies that human investigators might miss. These systems can detect everything from staged accidents to inflated medical claims by analyzing behavioral patterns, cross-referencing databases, and identifying inconsistencies in real-time.

 Risk Prediction: The Crystal Ball Effect

• Beyond processing existing claims, AI is revolutionizing how insurers predict and price risk. Machine learning algorithms analyze millions of data points, from satellite imagery showing property conditions to IoT sensors monitoring driving behavior, to create highly accurate risk profiles.

• This granular risk assessment enables dynamic pricing models that adjust premiums based on real-time risk factors. A homeowner who installs smart security systems might see immediate premium reductions, while a driver who demonstrates consistently safe behavior through telematics could earn ongoing discounts.

• The implications extend beyond individual policies. Insurers can now predict natural disaster impacts with greater accuracy, optimize their risk portfolios, and even provide early warning systems to policyholders to prevent losses before they occur.

Investment Priorities and Market Focus

• AI garnered the largest share of experts, about 36%, who weighed in on what the top tech innovation priority for the coming year was. Big data and analytics were the second highest with 28%, followed closely by cloud and digital infrastructure with 26% of respondents.

• This investment pattern reveals a clear strategy: insurers are building comprehensive AI ecosystems rather than implementing isolated solutions. The combination of AI, big data analytics, and cloud infrastructure creates a powerful platform for innovation across all aspects of insurance operations.

• While AI monetization lags, embedded insurance is set to grow by 30%, especially in personal lines. This suggests that while the technology is maturing rapidly, the industry is still learning how to fully capitalize on its potential.

Real-World Applications

The theoretical benefits of AI in insurance are compelling, but the real-world applications demonstrate its transformative power:

• Auto Insurance: Computer vision analyzes accident photos to assess damage severity and estimate repair costs instantly. Telematics devices monitor driving behavior to adjust premiums dynamically and even predict potential accidents before they occur.

• Property Insurance: Satellite imagery and weather data help insurers assess property risks and predict natural disaster impacts. Drones inspect hard-to-reach areas for damage assessment, reducing both time and safety risks for human inspectors.

• Health Insurance: AI analyzes medical records to identify potential fraud, predict health outcomes, and optimize treatment recommendations. Machine learning algorithms can even identify patients at risk for specific conditions, enabling preventive interventions.

• Life Insurance: Underwriting processes that once took weeks now occur in minutes through AI analysis of medical records, lifestyle data, and risk factors. This dramatically improves the customer experience while maintaining rigorous risk assessment standards.

The Road Ahead

• The integration of AI in insurance represents more than technological upgrade, it's a fundamental reimagining of how risk is assessed, managed, and transferred. As we move forward, the insurers who successfully leverage AI will enjoy significant competitive advantages through improved efficiency, better risk selection, enhanced customer experiences, and reduced fraud losses.

• The transformation is accelerating, driven by technological advancement, competitive pressure, and changing customer expectations. For insurance professionals, understanding and adapting to this AI-driven future isn't just an opportunity, it's an imperative for survival in an increasingly digital marketplace.

• The question isn't whether AI will transform insurance, it's how quickly insurers can adapt to harness its full potential while maintaining the trust and reliability that remain the foundation of the industry.

Final Thought

As we stand at this technological crossroads, the insurance industry faces a defining moment. The companies that embrace AI today aren't just adopting new tools, they're positioning themselves to lead tomorrow's market. The convergence of artificial intelligence with traditional insurance principles creates unprecedented opportunities to serve customers better, operate more efficiently, and build more resilient businesses. In this rapidly evolving landscape, the winners won't be those who resist change, but those who thoughtfully integrate AI while preserving the human elements that make insurance truly valuable: empathy, trust, and the promise of protection when it matters most.

From Payment Rails to Embedded Finance: What VCs Are Betting on in Fintech

The fintech revolution has evolved far beyond simple payment apps and digital wallets. As we advance through 2025, venture capitalists are recalibrating their strategies, moving away from traditional fintech plays toward sophisticated infrastructure and embedded financial services that promise to reshape how businesses and consumers interact with money.

The Great Fintech Reset: Where the Smart Money Is Going

The numbers tell a compelling story of transformation. While overall VC investment in fintech remains near six-year lows, strategic investors are doubling down on specific segments that demonstrate exceptional growth potential. The embedded finance market, valued at $104.8 billion in 2024, is projected to explode to $690.39 billion by 2030, a staggering 36.4% compound annual growth rate that has captured the attention of sophisticated investors worldwide.

This isn't just another tech trend. It represents a fundamental shift in how financial services are delivered, consumed, and integrated into daily life. Smart VCs recognize that the future belongs to companies that can seamlessly weave financial functionality into existing platforms rather than building standalone financial products

Payment Rails: The Infrastructure Play That's Paying Off

The backbone of modern finance is undergoing a radical transformation, and investors are taking notice. FedNow, the Federal Reserve's instant payment system, is processing $190 million in payments daily, while Real-Time Payments (RTP) networks reported a remarkable 94% increase in transaction volume throughout 2024. This explosive growth has tripled participation in instant payment rails over the past year, with over 1,200 financial institutions now connected to these systems.

For VCs, this represents more than just impressive statistics, it signals a massive opportunity in payment infrastructure. Companies building the pipes that enable instant, seamless transactions are attracting significant investment because they're positioned to capture value from every transaction flowing through their systems. The shift from traditional payment processing to instant settlement creates entirely new revenue streams and business models that savvy investors are eager to fund.

Embedded Finance: The Trillion-Dollar Opportunity

The embedded finance sector is where VCs are placing their biggest bets, and the data supports their enthusiasm. Multiple market research firms project the sector will reach between $570.9 billion and $1.73 trillion by 2033, depending on adoption rates and regulatory environments. These aren't just optimistic projections, they're backed by real market momentum.

Consider the rapid expansion beyond traditional sectors. Healthcare, construction, and hospitality, industries previously slow to adopt financial technology, are now integrating tailored financial services directly into their platforms. This expansion is driving what investors call the "invisible finance" trend, where financial services become so seamlessly integrated that users barely notice they're engaging with sophisticated financial products.

The retail sector alone demonstrates the power of this shift. Fintech companies have grown from handling 22% of personal loan originations in 2019 to approximately 39% in 2024. This isn't just market share displacement, it's evidence of a fundamental change in how consumers prefer to access financial services: embedded within the platforms and services they already use.

The AI Wild Card: Intelligent Financial Services

Artificial intelligence has emerged as a bright spot in an otherwise cautious investment environment. VCs are particularly excited about AI applications that enhance embedded finance platforms, enabling real-time credit decisions, personalized financial products, and predictive analytics that can anticipate user needs before they're explicitly expressed.

The convergence of AI and embedded finance is creating opportunities for companies to offer hyper-personalized financial services at scale. For investors, this represents the holy grail of fintech: technology that can increase conversion rates, reduce risk, and create sticky customer relationships simultaneously.

Geographic Hotspots: Where the Action Is

The global nature of fintech investment is creating interesting regional dynamics. China's embedded finance market is expected to grow at a remarkable 32.8% CAGR through 2030, driven by tech giants like Alibaba and Tencent integrating financial services into their ecosystems. Meanwhile, India is witnessing significant growth with a 19.5% CAGR, fueled by a massive underbanked population and supportive regulatory environment.

These geographic variations are creating opportunities for VCs to invest in region-specific solutions that can later be adapted for global markets. The most successful fintech companies are those that can navigate diverse regulatory environments while maintaining their core value propositions.

The Regulatory Reality Check

Smart investors are also paying close attention to the regulatory landscape. Increased regulation, predicted as one of the top fintech trends for 2025, isn't necessarily a headwind, it's an opportunity for well-positioned companies to create competitive moats. Firms that can navigate complex compliance requirements while maintaining user experience advantages are attracting premium valuations.

The regulatory environment is actually accelerating the embedded finance trend, as companies seek to partner with established financial institutions rather than navigate licensing requirements independently. This creates opportunities for B2B fintech companies that can serve as bridges between traditional financial institutions and technology platforms.

The Investment Thesis: Infrastructure Over Apps

The most successful fintech VCs are shifting their focus from consumer-facing applications to the infrastructure that powers them. The companies receiving the largest funding rounds are those building the rails, APIs, and platforms that enable other businesses to offer financial services seamlessly.

This infrastructure-first approach reflects a mature understanding of the fintech ecosystem. While consumer apps can achieve viral growth, infrastructure companies build sustainable, defensible businesses with predictable revenue streams and strong network effects.

Looking Forward: The Next Wave

As we move deeper into 2025, the fintech landscape is being reshaped by three key forces: the maturation of instant payment rails, the explosive growth of embedded finance, and the intelligent application of AI to financial services. VCs who understand these dynamics and invest accordingly are positioning themselves to capture outsized returns in what promises to be the most transformative period in financial services history.

The message is clear: the future of fintech isn't about building better banking apps, it's about making finance invisible, instant, and intelligent. The companies and investors who embrace this reality will define the next decade of financial innovation.

Final Thoughts

The fintech evolution we're witnessing today represents more than just technological advancement, it's a fundamental reimagining of how financial services integrate into human and business experiences. For venture capitalists, this moment presents both unprecedented opportunity and significant risk. 

The data overwhelmingly supports one conclusion: the age of standalone fintech products is ending, and the era of invisible, embedded financial services has begun. The question isn't whether this transformation will happen, it's whether investors will have the vision to back the companies that make it reality.

A summary of Mandalore Partners’ portfolio companies’ impact - 2024

Executive Summary

Mandalore Partners is a leading impact investor, committed to generating positive change alongside strong financial returns. We strategically invest in innovative companies that leverage impact as a driver of performance and differentiation. This report showcases the tangible impact achieved by our portfolio companies in 2024, highlighting their contributions to a healthier, more inclusive, and sustainable world.

Our portfolio companies have collectively improved the well-being of over 81,000 individuals through access to healthcare and optimized work environments. They have facilitated economic empowerment for women in emerging countries, enabling financial stability and skills development. Furthermore, they have enhanced emergency response capabilities, protecting a territorial area of 126,021 km² and improving public safety. Finally, our portfolio companies have empowered organizations to effectively measure and optimize their impact, driving accountability and transparency in the impact sector. These achievements demonstrate the power of impact investing to create a better future, and underscore Mandalore Partners' leadership in driving positive change.

Our Approach to Impact

At Mandalore Partners, we invest in high-growth potential companies that leverage impact as a driver of performance and differentiation. Unlike traditional investment funds, we work closely with our portfolio companies to structure and maximize their impact while ensuring profitable and sustainable growth. Our approach is built on rigorous criteria for evaluating and supporting businesses, focusing on innovative business models that can positively transform their markets.

Our Investment Thesis

We invest in companies that use technology and innovation to address major challenges and have strong scalability potential. Our portfolio consists of companies that meet three fundamental criteria:

Measurable and Tangible Impact: We ensure that companies deliver verifiable value to their stakeholders, with clear performance indicators.

Solid and Scalable Business Model: Impact should not be a constraint but rather an accelerator of growth.

Sustainable Competitive Advantage: We seek companies that can innovate and distinguish themselves sustainably in their market.

We don’t just invest: we actively collaborate with leadership teams to refine their strategy, structure their impact, and strengthen their market positioning.

Our Differentiation

Unlike conventional investment funds, Mandalore Partners does not position itself as an impact fund, but as a pragmatic investor who integrates impact as a lever for value creation. Instead, it actively supports its portfolio companies to align growth with impact without compromising on performance and adopts a targeted sector approach, focusing on technology companies with real potential to transform their markets.

Our Companies and Their Impact

We have invested in several companies that integrate impact as a core element of their business model:

Capsix
Capsix is developing a revolutionary robotic solution to democratize access to body care and reduce chronic pain. This innovation enables broader and more accessible treatment, particularly in workplaces where preventing musculoskeletal disorders (MSDs) is essential.

Isahit
Isahit operates a digital micro-work platform that provides economic opportunities to women in developing countries. It combines social impact and economic performance by meeting corporate needs while promoting the financial empowerment of its workers.

AUM Biosync
AUM Biosync develops AI-driven solutions to improve the quality of life for shift workers. Its goal is to optimize biological rhythms and reduce negative health impacts.

Impact Track
Impact Track offers a platform that helps impact-driven organizations measure and optimize their results. Its data-driven approach structures impact measurement and attracts funding.

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Capsix

Source used for this section: Résultats Impacts iYU Capsix

Capsix has developed a cutting-edge robotic solution designed to democratize access to physical care and reduce chronic pain, especially in environments where musculoskeletal disorders (MSDs) are prevalent. By focusing on improving employee wellness and preventing injuries, Capsix contributes to healthier and more productive workplaces. The innovative approach is particularly beneficial in industries where physical labor is required, offering workers accessible and effective solutions for chronic pain management and overall well-being.

Figure 1: iYU massage robot by Capsix

In 2023, Capsix achieved notable improvements across several key impact indicators. These results were based on a study spanning two months, conducted on a stressed population of 27 people, during which participants received 20 minutes of IYU massages twice a week. The solution led to a significant reduction in stress levels, with a decrease of 37%, and anxiety was reduced by 64%. Depression levels saw a 33% reduction, and latency (the time it takes for users to feel the benefits of the solution) decreased by 44%. Additionally, users experienced a 25% reduction in various disorders and an 11% improvement in overall physical condition. Serenity and calmness were also notably improved, with increases of 11% and 12%, respectively.

In another study conducted over five weeks, Capsix examined the impact of its solution on individuals suffering from chronic back pain. This study involved a group of 30 participants who received IYU massages for 30 minutes twice per week. Their results were compared with those of two other groups: one that combined 15 minutes of exercise with 15 minutes of IYU, and another that combined 15 minutes of exercise with 15 minutes of relaxation. The findings demonstrated that Capsix's robotic solution significantly alleviated physiological stress, improved perceived health, and enhanced cognitive performance. Sleep disorders were reduced, and participants reported notable improvements in flexibility, muscular endurance, and postural stability.

These benefits not only contribute to the well-being of individuals but also support businesses in creating more resilient and productive workforces. Through its innovative approach, Capsix continues to drive positive change in workplace health, offering scalable solutions that enhance both physical and mental wellness, ultimately contributing to the long-term success of its users and clients alike.

Figure 2. Results of a study spanning two months in 2023, conducted on a stressed population of 27 people, during which participants received 20 minutes of IYU massages twice a week.

Figure 3: Changes in Stress, Anxiety, and Depression Levels after the Capsix study spanning two months in 2023, conducted on a stressed population of 27 people, during which participants received 20 minutes of IYU massages twice a week.

Figure 4: Changes in Sleep Quality, Latency, and Disorders after the Capsix study spanning two months in 2023, conducted on a stressed population of 27 people, during which participants received 20 minutes of IYU massages twice a week.

In 2024, Capsix conducted a study evaluating the efficacy of its iYU robotic massage solution in alleviating low back tension and improving overall well-being. Over five weeks, 30 participants were divided into three groups: one receiving 30-minute iYU massage sessions twice per week, another combining 15 minutes of exercise with 15 minutes of iYU, and a third combining 15 minutes of exercise with 15 minutes of relaxation. The group that received iYU massages demonstrated remarkable improvements, including a 63% reduction in physiological stress (measured via cortisol levels) and a 31% decrease in perceived stress. Pain levels were reduced by 48%, while functional capacity showed significant enhancements, with a 39% and 60% increase in the Biering-Sorensen and Shirado-Ito tests, respectively. Sleep disruption decreased by 24%, and insomnia levels dropped by 28%. Participants also reported a 14% increase in perceived quality of life, a 29% improvement in well-being, and a 20% boost in recovery. These findings underscore iYU’s effectiveness in addressing both physical and mental health challenges, further solidifying Capsix’s impact in promoting holistic wellness.

Figure 5: Changes in Functional Capacity Markers after a Capsix study spanning five weeks in 2024, conducted on 30 participants receiving iYU robotic massages and/or exercise

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Isahit

Source used for this section: Annual Impact Study June 2022 - May 2023

Isahit is a key player in digital and economic inclusion, providing women in emerging countries with income opportunities while equipping them with valuable digital and professional skills. The platform operates on a dual model: offering supplemental income while fostering sustainable skills development, ensuring long-term employability and financial stability. Unlike other micro-work platforms often criticized for precarious labor conditions, Isahit prioritizes structured, meaningful engagement. By offering a framework that extends beyond immediate compensation, the platform supports professional growth, personal empowerment, and community-building.

Figure 6: Isahit Platform

The impact of Isahit is primarily reflected in the economic and professional empowerment of its beneficiaries. On average, HITers who left the platform positively earned €1,306, demonstrating the platform’s role in providing tangible financial opportunities. More than half of them, 56%, reported being able to save money, indicating improved financial stability. This economic impact is reinforced by Isahit’s structured approach to work, which differs from other micro-task platforms by offering a more sustainable and empowering experience. Rather than being limited to short-term gigs, HITers gain exposure to structured work that enhances their professional trajectory.

A key differentiating factor of Isahit is its educational and community-driven approach. The platform provides 56 free digital courses, enabling users to develop skills that align with market demands. This commitment to continuous learning is reflected in user satisfaction, with 91% of HITers reporting that the digital skills acquired on the platform met their expectations. The experience gained on Isahit is widely recognized as an asset in job searches, with 80% of HITers considering it a valuable professional credential. Furthermore, the platform serves as a catalyst for personal growth, with 70% of users stating that Isahit has helped them achieve or will help them achieve their personal projects.

Figure 7: Effects of Isahit on personal growth

The social impact of Isahit extends beyond skills development and financial gains. The sense of belonging to an international community plays a crucial role in the empowerment of HITers, with 88% of users recognizing the added value of being part of such a network. This community aspect fosters confidence, motivation, and experience-sharing, creating an environment conducive to long-term professional integration. Data also highlight significant improvements in soft skills and workplace readiness. Before joining the platform, 69% of HITers felt confident in themselves, a figure that rose to 96% after leaving. Similarly, the ability to make independent decisions improved from 69% to 95%, while comfort with entering the job market increased from 50% to 92%. These metrics underscore the role of Isahit in strengthening self-esteem, autonomy, and employability.

Figure 8: Effects of Isahit on growth in confidence and workplace readiness

Isahit’s model not only provides income but also facilitates the successful transition of HITers into the workforce. One of the most concrete indicators of impact is the realization of life projects. During the study period, 64 HITers, representing 5.2% of those who left the platform, successfully completed their professional projects after working more than 50 hours on Isahit. This data highlights the platform’s ability to serve as a stepping stone for users aiming to launch careers, businesses, or educational endeavors.

While Isahit has demonstrated a strong and measurable impact, challenges remain in sustaining its long-term effects. Ensuring that HITers continue to benefit from their experience beyond their time on the platform is a key priority. Expanding training offerings, particularly through certified learning paths, could further enhance employability and career prospects. Additionally, diversifying task opportunities to better align with individual aspirations may strengthen the platform’s role in career development.

Ultimately, Isahit goes beyond being a simple micro-work platform by integrating income generation, skills training, and personal development into a cohesive model. The high recommendation rate of 84% from HITers reflects strong overall satisfaction and confidence in the platform’s ability to drive meaningful change. By fostering digital and economic inclusion, Isahit empowers women to build stable and ambitious futures, contributing to a more inclusive global workforce.

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AUM Biosync

Source used for this section: https://page.impacttrack.org/aum-biosync 

AUM Biosync is dedicated to enhancing the quality of life for workers in high-risk and shift-based professions through AI-driven solutions that optimize biological rhythms and improve operational efficiency. By equipping emergency response teams, firefighters, and public service personnel with innovative tools, AUM Biosync contributes to improved health, safety, and performance across its client organizations. The company’s growing impact is evident in key performance indicators, reflecting its expanding role in optimizing emergency response operations and strengthening public safety infrastructure.

Figure 9: AUM Biosync platform

Between 2022 and 2024, AUM Biosync saw a substantial increase in engagement and operational reach. The total number of individuals engaged across its client base rose from 54,600 in 2022 to 81,053 in 2024, with the number of voluntary firefighters increasing from 42,700 to 56,724 over the same period. This expansion underscores AUM Biosync’s role in fostering workforce participation and strengthening emergency response capacity.

Figure 10: Total Number of personnel Engaged Across Clients (2022 vs 2024)

Operational impact has also grown significantly. The annual number of emergency interventions performed by AUM Biosync’s client organizations more than doubled, increasing from 895,000 in 2022 to 1.82 million in 2024. This surge highlights the efficiency gains facilitated by the company’s solutions, which enhance risk analysis, response coordination, and overall service delivery. 

Figure 11: Annual Interventions Conducted by Clients (2022 vs 2024)

The company’s impact extends beyond operational improvements to broader social contributions. In 2024, AUM Biosync donated €69,000 to charitable organizations supporting children, including initiatives for firefighter orphans and programs such as Pompy l’ourson and Rêves de gosses. Additionally, the total territorial area protected by client organizations increased from 94,000 km² in 2022 to 126,021 km² in 2024, reflecting a significant expansion in service coverage.

Figure 12: Territorial Area Protected by Clients (2022 vs 2024)

AUM Biosync's products and services receive strong endorsements from users, particularly in their ability to enhance emergency response efficiency, operational alignment, and crisis management. 69.7% of users strongly agree that the company's solutions contribute to the equitable and sustainable distribution of emergency services, ensuring fair access to critical interventions. Furthermore, 70.1% believe that AUM Biosync’s offerings effectively meet professional and operational expectations, reinforcing their relevance in real-world applications.

In terms of risk management, 72.9% of respondents strongly agree that AUM Biosync’s solutions enhance risk analysis and response coverage efficiency, making them a vital tool for decision-making in high-pressure environments. Additionally, 65.8% of users acknowledge that these tools improve the accessibility and sustainability of civic engagement, reflecting their role in supporting volunteer and professional emergency responders.

A particularly notable impact is seen in crisis understanding and resilience, where 76.3% of respondents affirm that AUM Biosync’s solutions help them better comprehend the complexity of major crises and resilience factors. This highlights the company's contribution to strengthening preparedness and response strategies in high-risk situations.

Financial Commitment to Protection and Safety

AUM Biosync’s client organizations collectively allocate significant resources toward the protection of people and assets. In 2024, the total budget dedicated to safeguarding personnel and infrastructure reached €2,477,300,711. This substantial investment underscores the critical role that AUM Biosync plays in optimizing resource allocation and ensuring cost-effective emergency management strategies. By integrating AI-driven predictive analytics and data-driven decision-making tools, AUM Biosync helps its partners maximize the efficiency of their financial commitments, ensuring that every euro spent contributes to enhanced safety and operational effectiveness.

The allocation of these funds supports a wide range of activities, including training programs for emergency responders, the acquisition of cutting-edge safety equipment, and the development of digital platforms for improved situational awareness. These financial investments are crucial in enabling organizations to anticipate risks, coordinate interventions more effectively, and minimize response time in critical situations.

Enhanced Emergency Response Capabilities

The operational effectiveness of AUM Biosync’s solutions is further demonstrated by the dramatic rise in emergency response activities. The total number of annual interventions conducted by client organizations surged from 895,000 in 2022 to 1,820,189 in 2024. This near doubling of interventions underscores the enhanced efficiency and coordination facilitated by AUM Biosync’s AI-powered technology, which streamlines intervention processes and improves overall response time.

By leveraging real-time data analytics and intelligent resource allocation, AUM Biosync enables emergency responders to prioritize incidents based on severity, optimize dispatch routes, and minimize delays. These improvements have a direct impact on public safety outcomes, reducing casualties and mitigating the impact of critical incidents. Additionally, the platform’s ability to analyze historical data allows for proactive risk assessment, helping organizations implement preventive measures and allocate resources more effectively before emergencies arise.

Figure 13: Total number of annual interventions conducted by client organizations (2022 vs 2024)

Strengthening Workforce Engagement

AUM Biosync’s impact is also reflected in the increasing number of personnel engaged across its client organizations. From 2022 to 2024, the number of individuals participating in emergency and protective services rose from 54,600 to 81,053. This expansion signifies the company’s effectiveness in fostering workforce engagement and reinforcing public service infrastructure. The growing number of engaged personnel highlights an increasing reliance on AUM Biosync’s technology to support first responders and ensure their well-being during high-pressure operations.

In particular, the number of voluntary firefighters has grown significantly, increasing from 42,700 in 2022 to 56,724 in 2024. This trend suggests that

AUM Biosync’s solutions not only optimize emergency response efforts but also enhance the appeal of volunteer service by providing better working conditions, more predictable schedules, and greater support for personnel. The ability to manage workloads more effectively and mitigate fatigue has been a key factor in retaining skilled professionals and encouraging new recruits to join the workforce.

Figure 14: Total Number of Personnel Engaged Across Clients (2022 vs 2024)

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Impact Track

Source used for this section: https://page.impacttrack.org/impact-track 

In a landscape where impact measurement is increasingly essential for businesses, investors, and associations, Impact Track serves as a strategic enabler by providing a robust methodological framework and specialized tools for assessing and demonstrating impact. The platform goes beyond traditional data tracking, transforming how organizations approach impact measurement by making best practices more accessible. By equipping organizations of all sizes with advanced impact measurement capabilities, Impact Track fosters data-driven decision-making and enhances strategic planning to maximize long-term outcomes.

Figure 15: Impact Track platform

A core strength of Impact Track is its ability to cultivate sustained engagement in impact measurement. Rather than serving as a one-time reporting tool, the platform integrates impact tracking into organizational workflows, enabling continuous improvement. This is reflected in user behavior, with 60.5% of organizations continuing to measure their impact beyond their initial subscription. Such long-term adoption underscores the platform’s effectiveness in embedding impact measurement as a sustainable and strategic practice.

Beyond operational benefits, Impact Track strengthens organizational credibility and visibility. In an environment where transparency and verifiable impact data are critical to securing stakeholder trust, the platform enables organizations to substantiate their claims with concrete evidence. As a result, 57.9% of users report that Impact Track has enhanced their project credibility, improving their ability to engage investors, funders, and beneficiaries. Furthermore, 59.5% of users feel confident in independently managing their impact measurement, demonstrating the platform’s role in fostering internal capacity and long-term autonomy

The adoption and utilization of Impact Track have grown significantly, as demonstrated by key performance indicators. The number of active projects tracked on the platform increased from 288 in 2023 to 359 in 2024, reflecting expanding engagement. Additionally, user satisfaction with training and support improved from 93.8% in 2023 to 97.2% in 2024, reinforcing the platform’s commitment to continuous service enhancement.

Despite strong adoption and satisfaction levels, opportunities for improvement remain. The user renewal rate stands at 43%, indicating that while nearly half of users continue beyond their initial subscription, there is room to further enhance retention. Offering more flexible plans, advanced analytical tools, and tailored support services could help convert a higher percentage of initial users into long-term subscribers. Additionally, Impact Track’s model could be adapted for new sectors, such as public administration and local governments, broadening its reach and relevance.

Impact Track is more than a technological solution; it is a driver of transformation in impact measurement practices. Its influence extends beyond the number of projects tracked, promoting a culture of rigorous, transparent, and effective impact evaluation. By equipping organizations with the tools needed to measure and optimize their impact, Impact Track is playing a critical role in strengthening accountability and fostering strategic decision-making across the impact sector.

Figure 16: User Feedback on Impact Measurement and Platform Usability

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Conclusion

Mandalore Partners is dedicated to building a future where positive impact and financial success go hand-in-hand. We believe that investing in companies that are committed to solving critical challenges is not only the right thing to do, but also a smart investment strategy. The achievements of our portfolio companies, as detailed in this report, demonstrate the power of impact investing to create a better world.

By leveraging innovation, technology, and a rigorous impact measurement framework, we are confident that our portfolio companies will continue to generate significant positive change while delivering strong financial performance. Mandalore Partners remains committed to our mission of investing in a better future, and we invite you to join us on this journey.

Venture Studio vs. Incubator vs. VC Fund: What Are the Differences?

In the startup world, founders have more pathways than ever to launch and grow their businesses. Venture studios, incubators, and VC funds are some of the most common models, but they’re often confused. Each plays a different role in a startup’s journey, and understanding how they work can help you choose the right support at the right time.

After reviewing real-world examples, startup reports, and founder experiences, this article breaks down how each model works, how they differ, and when they are most useful.

Venture Studios Create Startups From Scratch

Venture studios don’t wait for external founders to pitch them ideas. Instead, they come up with startup concepts internally and build them in-house. The studio handles early research, product development, branding, and even hires founding team members.

The goal is to create multiple startups each year, test them quickly, and scale the most promising ones. Studios usually retain a large share of equity in the companies they build and stay involved long term. This model offers strong support but less ownership for incoming founders.

Example: Atomic is a top venture studio that co-founded companies like Hims and Bungalow. It provides full support, from engineering to legal, giving startups a strong foundation.

Venture studios are still relatively new compared to incubators and VC funds. Globally, there are estimated to be 500–700 venture studios, while there are thousands of VC funds and incubators. This model shows how investors are moving earlier into the startup lifecycle, often building startups from scratch so that investment and company creation happen simultaneously. Venture studios also reflect a growing trend of investors getting involved earlier in the innovation process, from the ideation phase onward. Unlike traditional VC funds that invest after a product or business model is validated, venture studios combine capital and company creation at the same time. This trend shows how the line between ‘builder’ and ‘investor’ is increasingly blurred.

Incubators Help Early-Stage Founders Shape Their Ideas

Incubators are designed for individuals or teams that already have a startup idea and need help turning it into a viable business. They typically offer mentorship, training sessions, office space, and sometimes small amounts of seed funding.

Most incubators run structured programs that last a few months. Founders join a cohort, attend workshops, get access to experienced mentors, and leave with a more developed product and pitch. The equity taken is usually minimal, and the focus is more on growth than ownership.

Example: The Founder Institute helps first-time founders get started by providing a step-by-step curriculum, access to a network of mentors, and feedback from experienced entrepreneurs.

VC Funds Invest in Startups That Are Ready to Grow

Venture capital funds work differently. They invest money into startups that already have a product, some traction, or a proven business model. VC funds are made up of pooled capital from outside investors called Limited Partners (LPs), and they typically take minority ownership in startups.

VCs don't build startups or run structured programs. Instead, they provide funding, advice, and connections to help companies grow faster. Founders usually seek out VC funding when they need to scale operations, expand into new markets, or hire aggressively.

Example: Andreessen Horowitz is a leading VC firm that has invested in companies like Airbnb and Coinbase. It provides both capital and high-level strategic support.

Key Differences Between Venture Studios, Incubators, and VC Funds

When they get involved:

• Venture studios come in at the idea stage. They build startups from zero, often without an external founder involved at first.

• Incubators support startups that are just beginning and need help shaping their ideas.

• VC funds invest in startups that are already operating and need capital to grow.

How they operate:

• Venture studios act like co-founders. They are deeply involved in building the company and typically stay long term.

• Incubators act as mentors and program hosts. They guide founders through the early stages but usually step back after the program ends.

• VC funds act as investors. They fund startups, join boards, and provide access to additional resources.

What they offer:

• Venture studios provide internal resources, team members, capital, and strategic direction.

• Incubators offer mentorship, training, and sometimes small funding or services.

• VC funds offer larger amounts of capital and help with scaling strategies, fundraising, and hiring.

Equity expectations:

• Venture studios usually take a significant equity stake, often ranging from 30 to 80 percent depending on how much they contribute.

• Incubators take a small equity stake, often around 5 to 10 percent.

• VC funds typically take between 10 to 30 percent, depending on the round and valuation.

Which Model Is Right for You?

The right model depends on where you are in your startup journey.

If you want to build a company but don't yet have an idea or team, a venture studio could be your best option. You’ll get full support, but you’ll share more equity.

If you have a startup idea but need help turning it into something real, an incubator is a great choice. You'll learn, build, and grow with peers, while keeping most of your ownership.

If your product is live and you're looking for funding to expand, a VC fund is the natural next step. You’ll raise larger sums in exchange for equity and get access to high-level strategic support.

Final Thoughts

Venture studios, incubators, and VC funds all aim to build successful startups, but they approach that goal in very different ways. Choosing the right one depends on your stage, goals, and how much ownership or involvement you’re willing to trade for support.

For founders who understand these differences, the startup journey becomes clearer and more strategic, and the chances of building something meaningful increase significantly. As more investors move upstream, the choice of partner; whether studio, incubator, or VC, is more strategic than ever.

Où vont les investissements VC en 2025 ?

L’année 2025 marque un tournant pour le capital-risque. Après une période de correction marquée par la prudence post-2021, les investisseurs reviennent sur le marché avec une vision plus sélective, plus stratégique, mais toujours ambitieuse. Certaines tendances se confirment, d’autres émergent, dessinant une nouvelle cartographie des secteurs les plus prometteurs.

Alors, où va l’argent du capital-risque cette année ? Voici un panorama des secteurs qui attirent le plus l’attention (et les fonds) des VC en 2025.

Le climat et la transition énergétique restent en tête des priorités

Le climate tech continue de séduire les investisseurs, porté par l’urgence climatique, les politiques européennes ambitieuses, et l’engagement des nouvelles générations.
En 2025, les fonds se tournent vers des solutions plus matures : stockage d’énergie, électrification industrielle, infrastructures vertes, et technologies de capture du carbone.

Les startups capables de combiner impact environnemental mesurable et viabilité économique deviennent les stars des portefeuilles VC. Les fonds créent même des équipes spécialisées pour capter les meilleurs dossiers du secteur.

L’intelligence artificielle passe du battage médiatique à l’adoption concrète

L’IA reste incontournable, mais l’approche évolue. Après l’explosion des modèles de langage et des outils génératifs en 2023–2024, les investisseurs misent désormais sur les applications sectorielles de l’IA : santé, logistique, cybersécurité, finance, éducation.

Les startups qui se contentent de “surfer sur l’IA” sans preuve d’utilité sont écartées. En revanche, celles qui intègrent l’IA pour résoudre des problèmes précis avec efficacité reçoivent un accueil très favorable.

La santé digitale et la biotechnologie reviennent au cœur des portefeuilles

Le secteur de la santé retrouve un second souffle en 2025. Les investisseurs ciblent des startups en healthtech, biotech et medtech, surtout celles qui allient innovation technologique et compréhension fine des besoins des patients.

On observe un fort intérêt pour les solutions liées à la santé mentale, la longévité, la médecine préventive, et la personnalisation des traitements via la donnée. La convergence entre technologie et biologie attire des tickets plus importants qu’auparavant.

La fintech se transforme, mais reste attractive

La fintech traverse une phase de consolidation, mais les projets solides continuent de lever. En 2025, les VC préfèrent des modèles plus résilients : infrastructure financière, outils B2B, sécurité des paiements, gestion d’actifs numériques.

Les néobanques et les solutions de paiement grand public ont moins la cote, sauf si elles affichent une rentabilité réelle et une différenciation claire. L’heure est à la maturité dans ce secteur autrefois surchauffé.

L’éducation et la formation professionnelle attirent un intérêt renouvelé

Le monde post-pandémie a changé la perception de l’éducation. En 2025, les investissements VC se dirigent vers des plateformes d’apprentissage continu, formation technique, et outils de requalification.

L’essor de l’IA et de l’automatisation crée une pression sur les compétences : les startups capables de proposer des formats flexibles, accessibles et certifiants rencontrent une forte demande — aussi bien du côté des particuliers que des entreprises.

L’agritech et la foodtech s’imposent comme des verticales stratégiques

La sécurité alimentaire et la durabilité deviennent des enjeux géopolitiques majeurs. En réponse, les VC s’intéressent aux innovations en agriculture régénérative, production locale, biotechnologie alimentaire, et logistique intelligente.

Des startups développant des alternatives aux pesticides, des capteurs intelligents pour les sols, ou des solutions d’agriculture verticale lèvent des fonds dans toute l’Europe. Ces technologies sont vues comme des leviers essentiels pour un futur résilient.

Moins de hype, plus de preuves

Ce qui caractérise les investissements VC en 2025, c’est une exigence renforcée de traction, de viabilité et d’impact concret. Les investisseurs recherchent des preuves : chiffre d’affaires, rétention, adoption, partenariats, réglementation maîtrisée.

L’époque des levées à neuf zéros sans produit fini est révolue. Désormais, l’équilibre entre vision ambitieuse et rigueur opérationnelle est la clé.

Conclusion : une année d’innovation responsable

En 2025, le capital-risque ne ralentit pas, il se réinvente. Les investissements se concentrent sur des secteurs à fort impact, où l’innovation technologique rencontre des besoins réels, sociétaux, et environnementaux. Cette évolution marque une nouvelle maturité de l’écosystème européen.

Pour les fondateurs, cela signifie qu’il faut allier audace, exécution, et alignement avec les grandes transitions du monde. Pour les investisseurs, 2025 est l’année où le capital-risque devient plus stratégique que jamais.

Pourquoi les insurtechs attirent autant les investisseurs ?

L’assurance n’a jamais été un secteur synonyme d’innovation rapide. Pourtant, depuis quelques années, les startups de l’insurtech bouleversent ce paysage traditionnel avec des approches digitales, agiles et centrées sur l’expérience utilisateur. Résultat : elles attirent des milliards d’euros d’investissement à travers le monde, et l’Europe n’est pas en reste.

Mais qu’est-ce qui rend les insurtechs si séduisantes aux yeux des investisseurs ? Voici les raisons clés.

Un marché colossal en attente de disruption

Le secteur de l’assurance représente des milliers de milliards d’euros de primes chaque année, avec une forte concentration d’acteurs historiques. C’est un marché immense, mais souvent lent, opaque et peu centré sur le client. Pourtant, l’insurtech connaît une croissance rapide : en 2023, les investissements mondiaux dans ce secteur ont dépassé les 4 milliards de dollars, malgré un contexte macroéconomique difficile. 

Cette dynamique s’est poursuivie en 2024, avec plus de 1,4 milliard de dollars levés au premier semestre, signe d’un intérêt soutenu des investisseurs pour des acteurs capables de digitaliser et transformer un marché encore largement traditionnel. Comme la fintech avant elle, l’insurtech promet d’ouvrir un secteur longtemps verrouillé à l’innovation, attirant ainsi des capitaux à la recherche de nouvelles opportunités de croissance.

Une transformation digitale enfin lancée

Les consommateurs veulent désormais souscrire, gérer et résilier leurs contrats d’assurance en ligne, en quelques clics. Les insurtechs répondent à cette attente avec des interfaces intuitives, des tarifs transparents, et parfois même une personnalisation en temps réel.

En automatisant les processus, en utilisant l’intelligence artificielle pour l’évaluation des risques ou le traitement des sinistres, ces startups réduisent drastiquement les coûts d’exploitation. Un levier très attractif pour les investisseurs en quête de rentabilité.

Des modèles hybrides et scalables

Les insurtechs n’ont pas toutes le même modèle. Certaines créent leurs propres produits d’assurance en tant que porteurs de risque, d’autres s’associent à des assureurs traditionnels pour distribuer des offres sous marque blanche, ou encore proposent des infrastructures tech en marque grise (B2B).

Ce niveau de flexibilité permet d’adapter le modèle économique à chaque marché local, tout en gardant une ambition d’expansion rapide à l’international. Les investisseurs apprécient ces modèles scalables, capables de croître sans exploser les coûts.

Un alignement avec les nouvelles attentes sociétales

Les jeunes consommateurs veulent des services simples, accessibles, et plus transparents, mais aussi des entreprises qui partagent leurs valeurs. De nombreuses insurtechs proposent des assurances à impact : mobilité douce, assurance santé mentale, couverture pour freelances, micro-assurance pour les populations exclues…

Ces approches rendent l’assurance plus inclusive et plus moderne, ce qui séduit non seulement les clients finaux mais aussi les fonds à impact ou les family offices sensibles aux enjeux sociétaux.

Des exemples de succès qui rassurent le marché

Des startups comme Alan (France), Wefox (Allemagne) ou Zego (Royaume-Uni) ont levé des centaines de millions d’euros ces dernières années. Elles prouvent que le modèle fonctionne, et qu’il est possible de combiner croissance rapide et innovation réglementée.

Ces success stories créent un effet d’entraînement : en voyant d’autres fonds entrer au capital, de nouveaux investisseurs veulent aussi prendre position tôt dans les prochaines pépites du secteur.

Une réglementation de plus en plus ouverte à l’innovation

Les régulateurs européens sont de plus en plus ouverts à l’expérimentation, notamment via des "sandboxes réglementaires" qui permettent aux insurtechs de tester de nouveaux produits en conditions réelles tout en restant encadrées.

Cela réduit le risque juridique pour les investisseurs et accélère la mise sur le marché des nouvelles offres. Un cadre qui rend l’investissement plus sûr et plus prévisible.

Conclusion : une vague structurelle, pas un effet de mode

L’insurtech n’est pas une simple tendance. C’est une réponse stratégique à un besoin profond de transformation dans un secteur clé de l’économie. Elle combine les ingrédients que les investisseurs recherchent : taille de marché, inefficience à corriger, technologies différenciantes, scalabilité, impact social, et exemples concrets de croissance.

Dans les années à venir, les insurtechs les plus solides pourraient bien devenir les nouveaux géants de l’assurance. Et pour les investisseurs, c’est maintenant qu’il faut être à bord.

Les KPIs clés pour mesurer la performance d’un venture studio

Les venture studios gagnent du terrain dans l’écosystème entrepreneurial, en créant des startups de manière itérative et structurée. Contrairement aux fonds d’investissement ou aux incubateurs, leur modèle repose sur la création interne d’entreprises. Un studio n’est pas qu’une machine à startups, c’est aussi un acteur de transformation. Mais comment mesurer leur réussite ? Quels indicateurs permettent d’évaluer leur performance au-delà des simples sorties financières ?

Dans cet article, nous explorons les principaux KPIs (indicateurs clés de performance) qui permettent de suivre et d’analyser l’efficacité d’un venture studio.

Le taux de création de startups est un indicateur fondamental

Un premier KPI essentiel est le nombre de startups créées sur une période donnée (souvent annuelle). Ce chiffre reflète la capacité du studio à générer, valider et transformer des idées en projets réels.

Il ne s’agit pas seulement de quantité. Le ratio entre idées explorées et startups réellement lancées permet de mesurer l'efficacité du processus de validation en amont.

Le taux de survie des startups montre la solidité du modèle

Créer une startup, c’est bien. Mais assurer sa survie dans les 12 à 36 mois, c’est mieux. Le taux de survie mesure le pourcentage de startups du studio toujours actives après une période définie. Il témoigne de la qualité de l’accompagnement, de la pertinence du produit, et de l’adéquation au marché.

Un bon venture studio ne se contente pas de lancer des projets : il les structure pour qu’ils tiennent la route.

La vitesse de mise sur le marché reflète l’agilité du studio

L’un des grands atouts des venture studios est leur capacité à aller vite. Le time-to-market — soit le temps entre l’idéation et le lancement public du produit — est un KPI clé.

Un cycle de développement court indique que le studio sait mobiliser ses ressources (design, produit, développement, juridique) pour accélérer la croissance des projets.

Les levées de fonds externes mesurent l’attractivité des projets

Lorsque les startups issues d’un studio réussissent à lever des fonds externes, cela valide non seulement leur potentiel, mais aussi la crédibilité du studio aux yeux des investisseurs.

Le montant levé, le nombre de tours de financement réussis, et la qualité des investisseurs impliqués sont autant d’indicateurs de la valeur créée par le studio.

Le retour sur investissement global reste un KPI incontournable

Même si les studios ne fonctionnent pas comme des fonds VC classiques, ils doivent générer un retour sur investissement (ROI) à long terme. Cela peut inclure les exits (reventes), les dividendes perçus, ou encore l’augmentation de la valorisation du portefeuille global.

Ce KPI est souvent analysé sur un horizon de 5 à 10 ans, le temps que les startups atteignent leur maturité.

L’efficacité opérationnelle interne fait aussi la différence

Au-delà des performances des startups, la productivité de l’équipe du studio est aussi un KPI à suivre. Combien de projets un chef de produit ou un développeur peut-il gérer par an ? Le coût moyen par startup créée est-il optimisé ? Ces données permettent de piloter le modèle comme une entreprise à part entière.

Le réseau d’experts et de talents est un levier stratégique

Enfin, un KPI souvent sous-estimé concerne le réseau activé par le studio. Cela inclut les fondateurs recrutés, les experts impliqués, les partenariats industriels ou commerciaux. La richesse et la diversité de cet écosystème renforcent l’effet de levier du studio.

Un studio performant attire des talents de qualité, mobilise des mentors engagés et crée des synergies entre les startups.

L’impact sectoriel ou thématique : un KPI à considérer

Certains venture studios choisissent de se spécialiser dans des secteurs clés comme la santé, le climat, ou la tech sociale. Dans ce cas, il peut être pertinent de mesurer leur influence spécifique sur ces écosystèmes, par exemple à travers le nombre de brevets déposés, les partenariats noués avec des grands groupes industriels, ou encore leur contribution à la transition numérique ou écologique. 

Conclusion : mesurer, c’est piloter

La performance d’un venture studio ne se mesure pas uniquement à travers les succès visibles. Derrière chaque startup lancée, il y a des processus, des paris, des ajustements. En suivant des KPIs adaptés, à la fois quantitatifs et qualitatifs — les studios peuvent affiner leur stratégie, prouver leur impact, et construire un modèle durable.

Dans un écosystème en constante évolution, les venture studios qui savent se mesurer sont ceux qui savent durer.

Major Insurtech Trends: AI, Personalization, Automation

The global insurance sector is undergoing a seismic shift. As customer expectations evolve and digital technologies mature, insurtech companies are leading the charge in transforming how insurance is designed, delivered, and experienced.

At the heart of this revolution are three powerful forces: Artificial Intelligence (AI), hyper-personalization, and automation. These trends are not just buzzwords, they are redefining the insurance landscape in 2025 and beyond.

AI takes over risk assessment and claims processing

Artificial intelligence is becoming a core enabler for smarter, faster, and more scalable insurance operations. Insurtechs are using AI to:

• Analyze real-time customer data to generate more accurate risk profiles

• Detect fraudulent claims through pattern recognition and anomaly detection

• Automate underwriting with machine learning models trained on massive datasets

• Power chatbots that handle routine claims and customer service with minimal human intervention

By 2025, AI will no longer be a “nice-to-have”, it will be a competitive necessity for both startups and incumbents.

Hyper-personalization is the new standard

The age of one-size-fits-all insurance products is over. Today’s consumers expect coverage tailored to their lifestyle, behavior, and needs - and insurtechs are delivering.

Using data from connected devices, social platforms, wearables, and spending habits, insurtech platforms can:

• Offer usage-based insurance (e.g., pay-as-you-drive car insurance)

• Tailor recommendations in real time, such as micro-policies for short-term travel or freelance work

• Adapt coverage dynamically as a customer’s circumstances evolve

This level of personalization leads to higher customer retention, lower churn, and better alignment between risk and premium.

Automation streamlines the entire insurance lifecycle

Insurtechs are pushing automation across the board, from customer onboarding to claims disbursement. Key developments include:

• Instant quotes generated by digital platforms using AI-powered rules engines

• Self-service portals where users can buy, manage, and renew policies online

• Automated claims payouts, sometimes settled within minutes using smart contracts or pre-validated data

Automation reduces operational costs, eliminates friction, and frees up human agents to focus on high-value interactions.

Embedded insurance gains ground

Closely tied to automation is the rise of embedded insurance; coverage seamlessly offered at the point of need, integrated into platforms like e-commerce checkouts, car rental apps, or fintech services.

This trend is set to reshape distribution models, enabling insurtechs to reach customers who may never have actively sought out a policy.

Data-driven innovation fuels inclusive growth

With AI and automation unlocking new types of data, insurtechs can serve previously “uninsurable” populations, especially in emerging markets. Behavioral data and alternative credit scoring models are helping design inclusive insurance products for gig workers, rural communities, or informal sectors.

This shift represents not only a business opportunity but also a social innovation frontier.

Conclusion: Insurtech is redefining the rules of the game

As we move further into 2025, the most successful insurtechs will be those that blend AI intelligence, customer-centric personalization, and end-to-end automation into a seamless experience.

Traditional insurers that fail to adapt will struggle to stay relevant, while agile, tech-savvy players will set the standard for what modern insurance looks like: proactive, digital-first, and deeply human in impact.

The Most VC-Funded Sectors in Europe

The Most VC-Funded Sectors in Europe

Europe’s startup ecosystem has grown rapidly over the past decade, attracting billions in venture capital (VC) from both local and global investors. While overall funding levels fluctuate with macroeconomic conditions, certain sectors consistently draw strong VC attention. From climate tech and deep tech to fintech, health innovations, and enterprise software, the continent’s innovation landscape is increasingly diverse and resilient.

Climate Tech Leads the Pack

Climate tech and energy transition startups are now Europe’s single largest VC-funded sector, accounting for approximately 27–30% of total venture capital investment in 2023 (Dealroom/Sifted). This surge reflects the EU’s ambitious carbon neutrality targets, supportive policy frameworks, and the growing appetite among investors for climate-positive solutions.

Startups tackling renewable energy, sustainable mobility, carbon capture, and circular economy solutions are driving the trend. Countries like the Netherlands, Germany, and the Nordics are at the forefront, combining strong cleantech ecosystems with dedicated climate funds.

AI & Deep Tech Keep Rising

AI and deep tech (which includes frontier technologies like advanced hardware, quantum computing, and automation) accounted for about 17% of Europe’s VC funding in 2023. The rise of generative AI and automation tools is accelerating investor interest, with large rounds for companies like Mistral AI, DeepL, and Aleph Alpha showing the strength of the ecosystem.

Key hubs for AI and deep tech include Berlin, Paris, and London, all benefiting from talent density and supportive research institutions.

Fintech Remains a Pillar

Fintech remains a major draw, attracting roughly 15–19% of total VC investment, down slightly from its peak but still firmly in the top three sectors. From digital banks to blockchain platforms and payments solutions, European fintech leaders like Revolut (UK), N26 (Germany), and Lydia (France) continue to scale, supported by consumers’ shift away from traditional banking.

London remains Europe’s fintech capital, thanks to its mature regulatory environment and deep investor pools.

Healthtech & Enterprise Software Stay Solid

While harder to split precisely, healthtech and enterprise software together continue to be pillars of European VC activity. Over the last 20 years, they have consistently accounted for a combined ~40% of total VC funding (Dealroom). Healthtech startups in telemedicine, AI diagnostics, and mental health are still seeing healthy long-term growth, while B2B SaaS and cloud solutions remain attractive bets for their scalability and recurring revenues.

Companies like Doctolib (France), Kry (Sweden), and Celonis (Germany) show how Europe’s healthtech and enterprise software scenes remain globally competitive.

Emerging Sectors to Watch

Beyond these leading sectors, several emerging areas are gaining momentum:

• AgriTech: With food security and regenerative farming in focus, AgriTech is steadily attracting more funding.

• Cybersecurity: Increasing digital threats are driving larger rounds for European security startups.

• Edtech: While post-pandemic growth slowed, niches like corporate training and AI-driven learning are evolving.

• Space Tech: Once US-dominated, Europe’s space tech sector is quietly expanding, supported by national programs and private capital.

How Does Europe Compare Globally?

According to Dealroom’s 2023 and early 2024 data, Europe’s top-funded sectors now mirror global trends in the US and East Asia. In the US, the top sectors by VC investment are:

1. Health & Biotech

2. Enterprise Software / AI

3. Fintech

East Asia follows a similar pattern, with deep tech, fintech, and industrial tech attracting the biggest rounds. Notably, Europe’s climate tech stands out: its share of total VC funding is higher than in North America or Asia, thanks to EU policy incentives and investor demand for sustainable growth.

Final Thoughts

The European VC landscape is dynamic, but certain sectors continue to stand out for their scale, impact, and resilience. Climate tech, deep tech, fintech, healthtech, and enterprise software together account for the lion’s share of VC investment, while emerging verticals like AgriTech and space tech hint at the next wave of innovation.

For founders, understanding which sectors attract capital and why can shape how you position your startup. For investors, the current trends reflect where both opportunity and responsibility intersect in the next era of European innovation.

Predictive Insurance Through AI: Myth or Reality?

Methodology: Exploring AI’s Role in Insurance Forecasting

This article draws on industry reports, case studies, and current use cases from insurers applying artificial intelligence to predictive modeling. It examines how AI is reshaping underwriting, claims management, and customer engagement and where the promise may be ahead of the current reality.

In Brief: Where We Stand Today

• AI is already delivering predictive insights in claims detection, risk scoring, and fraud prevention.

• Adoption remains uneven, with most impact in large carriers and insurtech startups.

• Challenges include data privacy concerns, regulatory hurdles, and model transparency.

• The future of predictive insurance lies in combining AI with human judgment and ethical frameworks.

How AI Is Changing Insurance Predictions

The idea of predictive insurance is no longer science fiction. With vast amounts of customer data, real-time IoT inputs (such as from vehicles or smart homes), and advanced machine learning models, insurers can now:

• Identify high-risk customers or properties proactively

• Anticipate claim likelihood based on behavioral and environmental factors

• Tailor pricing more accurately for individual policyholders

• Detect fraud before payouts are made

AI models can process data at a scale and speed that human teams simply can’t match, making predictive insurance a growing reality in modern underwriting.

The Challenges That Make It Feel Like a Myth

Despite these advancements, predictive insurance powered by AI isn’t universal yet. Key challenges include:

Data Quality and Access

Insurers need clean, consistent, and ethically sourced data. Many legacy systems were not built for this level of data integration, slowing adoption.

Regulatory Landscape

Predictive pricing and claims forecasting raise complex compliance questions. Regulators demand transparency on how models make decisions, particularly in sensitive areas like health or auto insurance.

Trust and Transparency

Consumers and sometimes underwriters want to understand why a price or decision was made. AI models can feel like a “black box,” making it harder to build trust without proper explainability measures.

Where AI Predictive Models Are Already Delivering

Despite these challenges, AI-driven prediction is already reshaping certain insurance segments: 

• Auto insurance: Predictive telematics models score driver safety in real time, impacting pricing.

• Property insurance: Climate and weather models anticipate loss patterns to adjust coverage proactively.

• Health insurance: Behavioral data informs wellness incentives and early intervention programs.

• Fraud detection: AI flags anomalies faster than traditional methods, cutting loss ratios.

These are no longer pilot projects; they're live tools helping insurers reduce costs, improve customer experience, and drive smarter decisions.

Final Thought: Myth or Reality? A Bit of Both For Now

Predictive insurance through AI is very real but it’s not evenly applied across the industry. For many carriers, true AI-driven prediction is still aspirational, hampered by legacy infrastructure, governance complexity, and talent gaps.

However, where AI is deployed well, it’s transforming how risk is assessed, priced, and managed. The future will belong to insurers who combine AI’s predictive power with human insight, transparency, and a focus on ethical impact.