Munich Re Ventures marks 10-year anniversary with $125 million HSB fundraise

By David Bull

June 4 - (The Insurer) - Munich Re’s venture capital arm has announced a new $125 million fund from its founding limited partner HSB to invest in so-called “built world” startups as well as cybersecurity and technologies driving towards a resilient future.

The fund launch, announced last month, is the second from HSB and the fifth overall for Munich Re Ventures, taking its assets under management to $1.2 billion.

The built world sector focuses on equipment and technology that de-risks and optimises performance in property, industry and related supply chains, the San Francisco-based firm said in a statement.

Munich Re Ventures managing general partner Jacqueline LeSage noted that HSB provided initial capital to the firm when it launched 10 years ago.

“Now, a decade on, we feel immense pride in the accomplishments of the incredible founders we’ve supported, as well as the partnerships they’ve built with HSB that are accelerating new visions for insurance. We are more committed than ever to backing the companies and teams that are most thoughtfully innovating at the intersection of risk and technology,” she said.

LeSage highlighted investments from the inaugural fund that went on to reach unicorn status, including At-Bay, Augury and Helium Mobile.

HSB president and CEO Greg Barats added: “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.

“As part of this ongoing effort, we’re delighted to see the launch of Munich Re Ventures’ HSB Fund II, which will help us build upon our collaborations with bold entrepreneurs that are creating solutions for problems both new and old.”

HSB worked with industrial AI solution provider Augury to create what it describes as an innovative production loss guarantee for critical rotating assets product and also provides capacity to cyber insurance and security provider At-Bay.

In the statement, Munich Re Ventures said that two recent recruits will lead activities, with principal Jennifer Place overseeing the HSB funds as well as leading investments for the built world sector more generally.

Adam Care, vice president and head of portfolio development for the HSB funds, will cultivate partnerships between the Munich Re Ventures portfolio and HSB, it continued.

“The new HSB Fund II further expands the team’s capacity for supporting startups innovating at the intersection of risk and technology,” the statement concluded.