Jul 12, 2022 - Economy & Business

Insure-tech startup Wefox now valued at $4.5 billion

Illustration of a fox with a $100 bill in its mouth.
Illustration: Gabriella Turrisi/Axios

Wefox, a German digital insurer, raised $400 million in Series D equity and debt funding led by existing investor Mubadala at a $4.5 billion valuation.

Why it matters: This is an up-round in a unicorn roadkill world.

  • It's also VC validation of Wefox's indirect model, leveraging in-house and third-party brokers, which was viewed as antiquated by rivals that go direct-to-consumer.
  • TechCrunch's Paul Sawers writes: "The approach is built on the basic notion that insurance is an inherently complex subject, and people would rather chat with a human and get personalized advice. And only then does the technology kick in, with all the usual mobile apps and online dashboards for registering and filing claims."

Other investors include Eurazeo, LGT, Horizons Ventures, OMERS Ventures and Target Global.

Selective sharing: Wefox won't disclose the round's debt-to-equity ratio, even though it will disclose the round size, valuation and revenue ($200m+ in first round months of 2022, on $600m rev run rate).

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