While investment into lending startups has receded in recent months, insuretech startups are gaining steam in their capital raising efforts.
About $945.6 million flowed into fintech in the third quarter of 2016, according to Dow Jones VentureSource, a 57% drop from the same period a year ago, when VCs deployed $2.2 billion into the broader sector, according to Dow Jones VentureSource. The amount invested in the most recent quarter was also down from the second quarter, when fintech companies raised $1.04 billion. Investment in insurance technology companies is on the rise. VCs put $167 million to work in insurance in the third quarter. The sector saw more funding in each of this year’s quarters than in any of the similar periods last year.