Hanaco Ventures joins Vesttoo through an equity investment of $6 Million USD, leading Vesttoo’s Series A round aimed at further promoting the company’s multi-billion security-based investment portfolio, as well as the world’s first fully digital marketplace for insurers, reinsurers, and pension funds.
Tel Aviv, Israel — Vesttoo, a leading global Alternative Reinsurance and Investment platform, announces it has raised $6 million in a Series A funding round led by Hanaco Ventures. The round is part of Hanaco’s broader investment strategy in Vesttoo, aimed at further developing Vesttoo’s Insurance-Linked Program (ILP) offering, an innovative security-based investment portfolio as well as the world’s first fully digital marketplace for insurance-based alternative risk transfer and investments.
Vesttoo’s ILP offering is a security-based investment portfolio based on non-catastrophe insurance risks, providing asset managers of all types with the unique opportunity to earn additional long-term, sustainable alpha from existing assets without the need to allocate cash.
The ILP program offers institutional investors risk remote investments in collateralized reinsurance deals, earning BB spread of AA uncorrelated risk in addition to the yield of their existing, high quality assets, with a significant global deal pipeline targeting first closing of $1B USD AUM within 12 months.
Furthermore, Vesttoo’s marketplace will allow insurers, reinsurers and pension funds to model, structure, price and place their offering online, while giving institutional investors direct access to the untapped market of alternative reinsurance and exceptional return on risk.
Both the ILP and the marketplace are novel instruments in the insurance space aimed at increasing liquidity and much needed capacity in the reinsurance market and facilitating the alternative reinsurance ecosystem, an integral part of Vesttoo’s business strategy to bridge the funding gap in the reinsurance market.
“We are happy to have Hanaco on board. This is an exceptional vote of confidence in Vesttoo’s unique offering. We have a significant global deal pipeline with insurers from the US, UK and mainland Europe, and are looking forward to further scaling Vesttoo’s ILP and fully digital marketplace with Hanaco’s support.” said Yaniv Bertele, CEO of Vesttoo.
Pasha Romanovski, Co-Founding Partner of Hanaco Ventures, commented- “Vesttoo is disrupting the reinsurance industry. The company is building a digital marketplace and has already proven its ability to sign multi-year contracts with leading US and EU insurance and reinsurance providers. Hanaco Ventures chose to invest in Vesttoo because of the unique solution and the company’s impressive founding team who will have a big impact in this untapped sector”.
About Hanaco Ventures: Hanaco Ventures is a New York and Tel Aviv-based venture capital fund that invests in emerging and late-stage start-ups from the global tech ecosystem. Hanaco partners with founders around the world, helping them become category leaders beloved by their customers. Our focus areas include Agtech, Agrifood, Foodtech and Digital Health, and software companies in the SaaS, Cyber and Fintech industries.
About Vesttoo: Vesttoo, is the world’s first marketplace for non-catastrophe insurance-based risk transfer and investments. Our proprietary AI-based technology facilitates risk transfer between insurance companies and institutional investors, providing insurance-linked investments to asset managers of all types, while enhancing risk transfer and liquidity in the Life and P&C insurance markets.
Vesttoo’s founding team include Yaniv Bertele, Chief Executive Officer, Alon Lifshitz, Chief Product Officer, and Ben Zickel, Chief Technological Officer.