The round was led by investment firm Battery Ventures, with additional contributions from Andreessen Horowitz (a16z) and Highland Europe.
Following their organisations’ respective investments, Marcus Ryu, a Partner at Battery Ventures, and Angela Strange, General Partner at a16z, will join hx’s board of investors.
The firm, which primarily serves insurance and reinsurance firms in the property and casualty (P&C) sector, will use the money raised to support its expansion into the US market. The company plans to open an office in New York later this year.
Additionally, hx will use the investment to further develop its product capabilities, and to double its employee numbers to over 200 in the next year.
Machine learning to analyse risk
Software developed by hx includes its pricing decision intelligence (PDI) platform hx Renew, which allows insurers to use large and alternative data sets, develop and refine rating tools, and use machine learning to price risks.
“The insurance industry is at the forefront of a rapidly changing world and must find ways to understand and respond to that change in risk profile,” said Amrit Santhirasenan, Co-Founder and CEO of hyperexponential. “We’ve focused on building a capital-efficient, independent business that was both high-growth and sustainable from the outset.
“Pricing risk is the most critical function of an insurance carrier,” Strange added. “Yet, most actuaries still work with cumbersome Excel models and are constrained by legacy software that limits their ability to dynamically incorporate new data and more sophisticated analytical techniques.”
Fellow insurtech Sprout.ai raised £5.4 million in a funding round led by Amadeus Capital Partners in late 2023.