Envelop announces $130mm series B funding

Envelop Risk, the UK-based cyber re/insurance managing general agent with Bermuda offices, has announced a new $130 million financing round.

With funding led by venture capital fund SoftBank Vision Fund 2, the data-driven underwriting and risk analytics business aims to expand its machine-learning underwriting activity in both London and Bermuda, it said.

As part of the transaction, Neil Cunha-Gomes, Investor for SoftBank Investment Advisers, will join Envelop Risk’s board of directors.

Envelop underwrites bespoke reinsurance for global insurance firms and uses advanced cyber analytics to enable customers to manage their portfolios with greater precision. It is, according to its founders, the only insurtech firm involved in cyber reinsurance from an underwriting perspective. Since 2018 it has underwritten over $250 million of business.

The transaction is planned to close in October 2021, subject to shareholder approval.

Envelop Risk co-founder and CEO Jonathan Spry said: “We are delighted to have reached such a significant milestone in our funding journey. This transaction will allow us to continue our leadership in data-driven specialty re/insurance underwriting and will be transformational for our business reach and activity.

“For the first time, Envelop Risk will be able to assume positions in risk capital, which gives us greater alignment with our partners.”

Co-founder and COO Paul Guthrie added: “We know that all companies of all sizes will eventually safeguard against increased risk through robust cyber insurance policies. Digital systems have reshaped our world, but they are also vulnerable individually, and as integrated networks. Cyber insurance plays a critical protective role. Envelop deploys capital thoughtfully into the cyber insurance ecosystem, providing assurance that mitigation resources are available immediately upon an attack, so organizations can continue to function in the face of these risks.”