Funding to support rapid growth acceleration as demand soars for financial protection from outages caused by third party-cloud-based service providers
Parametrix Insurance, the leading IT downtime insurance provider, today announced that it has raised $17.5M in funding from leading VC firms including FirstMark Capital with participation from F2 Venture Capital. Our first-of-its-kind insurance offering is seeing strong market demand with the new funding aimed at accelerating global expansion, which will translate into sales in more countries either directly or through our fast-growing network of insurance brokers.
While a rapidly growing number of companies rely on third-party cloud-based services for their mission-critical activities, provider downtime remains out of their control. When cloud providers, ecommerce services, payment gateways and CRM systems among many others go down, their customers suffer both financially and operationally due to significant direct revenue losses, customer SLA compensation, expenses related to reputational damage and diminished productivity.
Parametrix’s hassle-free fast-paying policies protect companies from these financial losses, enabling companies to quickly manage their risk and quickly get back to business. Our affordable parametric offerings pay out in full within 15 days when downtime triggers are met, without requiring customers to go through lengthy claims adjustment processes or restricting them in terms of how they use the funds.
Parametrix has developed a state-of-the-art monitoring system on a multi-cloud environment which continuously tracks the availability and performance of third-party IT services across the globe. The system collects millions of pieces of granular data points and metrics every day, with detection capabilities down to the millisecond. This is the basis for our predictive modeling and risk assessment algorithms, enabling us to provide our customers with a full insurance solution.
“The business world’s dependence on cloud solutions is rapidly accelerating. To help them hedge this external risk, we created a new category in the insurance market by introducing reliable protection from the cloud downtime incidents that inevitably occur“, said Yonatan Hatzor, CEO at Parametrix Insurance. “I am very proud that FirstMark has joined our journey, and excited to move together into our rapid growth phase during which we will expand our operations around the world.”
“Parametrix has built an incredible platform to monitor third party cloud platforms at an extremely granular level. Having seen first hand the impact of downtime within our portfolio, we believe cloud downtime insurance will become a core part of every company’s business continuity plan,” said Amish Jani, Founder and Partner at FirstMark.
“Parametrix has created a first of its kind insurance product for a huge and growing market. The acceleration of digitization and on-line services means Parametrix is well positioned to be the leading company of this market.” said Jonathan Saacks, Managing Partner at F2 Venture Capital.
About Parametrix
Parametrix is the leading provider of cloud outage analytics and insurance solutions. We specialize in underwriting parametric insurance for system interruption, helping businesses protect against the costly impacts of downtime. Leveraging proprietary technology, we continuously monitor third-party IT services, gathering granular data on service performance and interruptions. This data enables us to assess risk accurately, provide instant insurance quotations, and streamline claims payments, ensuring our clients receive fast, reliable support when they need it most. Parametrix is a Managing General Agent and Lloyd’s Coverholder whose policies are backed by major A-rated global insurers. The company is based out of New York.
About FirstMark Capital
FirstMark is a full-stack technology venture capital firm based in New York City. We invest early and can scale with companies as they grow, helping to accelerate the success of exceptional founders at every stage of their journey. We are proud partners to some of the most iconic companies in the world, including Shopify, Pinterest, Airbnb, DraftKings, Discord and Ro Health, among many others. Our proprietary, industry-defining Platform gives our companies unique access to valuable expert, talent and customer networks, which drives competitive advantage and ultimately helps create company-defining moments. Learn more and become part of our network at firstmarkcap.com.
About F2 Venture Capital
F2 Venture Capital is a specialized, seed-stage VC fund backing Israeli frontier technology companies at the junction of Big Data, AI, and Connectivity. Composed of founder-oriented, hands-on investors, F2 also operates the Junction, a pre-seed investment program built to help founders achieve their targets in an accelerated time frame. To connect with F2 and learn more about our activity, visit f2vc.com.
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