Munich Re Ventures has launched a $125m fund with capital from insurer HSB, to be invested in technology for de-risking industry.
Munich Re head office building, photo courtesy of Munich Re
German reinsurance company Munich Re’s CVC unit has launched a fifth fund of $125m, focusing on startups making technology to mitigate risk in the construction and property industries and their related supply chains. It will also invest in resilience technology, such as cybersecurity software.
The fund is called HSB Fund II. Its capital has been provided by limited partner HSB, an specialty insurance company that is part of the Munich Re group and which also financed the CVC unit’s first fund in 2015. HSB’s specialist areas of coverage include equipment breakdown and cyber risk.
“HSB is constantly on the lookout for innovative technologies and business models that predict and prevent breakdown of the equipment that our customers rely on in their businesses and everyday lives,” said Greg Barats, president and CEO of HSB, in a release.
HSB will draw on the Munich Re Ventures portfolio companies to develop its business. It has previously formed partnerships with portfolio companies such as Augury, which makes technology to monitor machine health and increase uptime. HSB used the partnership to create a product that insures against production downtime caused by the failure of key machinery.
Augury was one of the first fund’s portfolio companies that reached unicorn status. Another was At-Bay, a cyber insurance and security provider.
Both HSB funds will be managed by Jennifer Place. Her colleague Adam Clare will oversee partnerships between the portfolio companies and the HSB business.
