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Global Insurance Accelerator nearly doubles funding for insurtech startups

Global Insurance Accelerator

October 4, 2019

The Global Insurance Accelerator (GIA), has announced changes to its funding structure that will begin with its 2020 cohort.

Beginning with the 2020 cohort, the GIA will increase the seed investment from $40,000 to $75,000 in return for a 5 percent equity stake.

By nearly doubling the investment, housing for participants will now be covered in entirety by the seed investment. Other program benefits for accepted startups will continue to include meetings with 75+ insurance-focused mentors, office space, educational sessions, exposure at industry conferences, and the opportunity to present at the Global Insurance Symposium.

The change in funding comes just six months after Nicole Gunderson took over as the accelerator’s new Managing Director.

“The GIA was established at the very forefront of the insurtech movement,” said Gunderson. “The funding and perks provided for startups at that time was more than equivalent to other accelerators in the industry, but 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.”

Since launching in 2014, the GIA has accepted 36 startups into the accelerator’s annual, 100-day program based in Des Moines.

The decision to increase program benefits for future cohorts was voted on and approved by GIA’s 13 insurer investor members of the GIA board.

In addition to the change in funding, GIA also announced that applications are now open for the 2020 cohort.

Global Insurance Accelerator nearly doubles funding for insurtech startups | Clay & Milk

A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.

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