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US InsurTech deal activity dropped by 5% YoY in H1 2025 : FinTech Global

Key US InsurTech investment stats in H1 2025:

  • US InsurTech deal activity dropped by 5% YoY in H1 2025
  • Californian companies continued to dominate US InsurTech deal activity with a third of the deals from the region
  • Ledgebrook, a US-based InsurTech firm focused on the excess and surplus (E&S) insurance market, secured one of the largest US InsurTech deals in the first half of the year with a $65m Series C funding round, bringing its total capital raised to over $110m

In H1 2025, the US InsurTech market showed modest signs of recovery after a challenging 2024.

A total of 69 funding rounds were recorded in the first half of the year, up 5% from the 66 deals completed in H2 2024 but still 3% lower than the 71 deals seen in H1 2024.

Funding volume reached $873m in H1 2025, a 61% decline from the $2.2bn raised in H2 2024 but a 66% increase from the $527m raised in H1 2024.

While investment levels remain well below previous highs, the sequential uptick in deal count and YoY increase in funding suggest a stabilizing investor outlook for the InsurTech sector in the US.

Californian companies continued to dominate US InsurTech deal activity with a third of the deals from the region

California retained its position as the most active InsurTech state in H1 2025, completing 22 deals (32% share), up from 20 deals (28% share) in H1 2024.

New York followed with 19 deals (28% share), a notable increase from 16 deals (23% share) in the same period last year.

Texas rounded out the top three with five deals (7% share), down from six deals (8% share) in H1 2024.

The growing share of activity in California and New York highlights their strengthening dominance in the US InsurTech landscape, as these states continue to attract a larger proportion of deal flow amidst an overall recovery in market conditions.

Ledgebrook, a US-based InsurTech firm focused on the excess and surplus (E&S) insurance market, secured one of the largest US InsurTech deals in the first half of the year with a $65m Series C funding round, bringing its total capital raised to over $110m

The round was led by The Stephens Group, with participation from Duquesne, Brand Foundry, Floating Point, Hummingbird Nomads, and American Family Ventures.

This latest capital injection will support the company’s rapid expansion, including talent acquisition, product diversification, and deeper collaboration with carrier partners through increased risk retention.

Ledgebrook aims to solidify its position as a premier E&S platform by enhancing its tech-driven infrastructure and strengthening relationships with wholesale brokers through consistent delivery and innovation.

The funding underscores strong investor confidence in Ledgebrook’s vision of blending underwriting expertise with modern technology to transform the traditionally complex E&S landscape.

FinTech Global

Alan Demers and Stephen Applebaum


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