4 October 2019News

Global Insurance Accelerator changes its funding structure

The Global Insurance Accelerator (GIA), an InsurTech accelerator focused on supporting and promoting innovation for the insurance industry, has changed its funding structure.

Until now each startup has received $40,000 in seed funding in exchange for six percent common equity. For the last three years GIA has also provided housing for at least one representative from each company at the Staybridge Suites, close to the GIA office.

Starting with the 2020 cohort, the GIA will increase the seed investment to $75,000 in the form of a post-money simple agreement for future equity (SAFE) which converts to five percent of the company.

Housing for participants will now be covered in entirety by the seed investment. Other program benefits will continue to include curated meetings with more than 75 insurance-focused mentors, office space and relevant educational sessions.

Startups also benefit from exposure at industry conferences and the opportunity to present at the Global Insurance Symposium, in front of more than 600 insurance industry professionals. GIA provides alumni companies with ongoing support following the completion of the program.

GIA’s board, which approved the decision to increase program benefits for future cohorts, includes representatives from Allstate; American Equity Investment Life Insurance Company; Delta Dental of Iowa; EMC Insurance; Farm Bureau Financial Services; Farmers Mutual Hail; Grinnell Mutual Reinsurance Company; Global Atlantic Financial Group; IMT Insurance Company; Markel Corporation; Mutual of Omaha; Principal Financial; and SFM.

GIA has accepted 36 startups into its annual 100-day program in Des Moines since it launched, providing interaction with insurance company executives and professionals who serve as mentors through the support of 13 insurance company investors.

Nicole Gunderson, managing director for the GIA, said in the early stages of the accelerator’s existence it provided more resources for startups than its competitors in the industry. “Like any startup, we’ve learned a lot in our first five years and need to continue to evolve and scale. Today, there is increased competition in the accelerator landscape, and our goal with this change is to provide a founder- and investor-friendly, standard market structure,” she said.