At the webinar “Close your round faster, on better terms” organized by the Swiss Insurtech Hub, Ernesto Costa showed how fundraising works from the perspective of early-stage founders in the climate and insurtech sectors, at Seed and Series A. His conclusion: fewer deals, more competition: Europe’s insurtechs need to rethink fundraising. The decisive factors are not visions, but fit, timing and process discipline.
Europe’s insurtech scene is under pressure. Despite a high level of innovation, only a fraction of global capital is flowing into the continent. At the same time, the number of deals is falling. For founders, this means that fundraising is no longer a pitch competition, but a strategic process in which precision is more important than storytelling.
Investors think in terms of risks, not visions
Anyone seeking capital needs to understand how investors assess risks. In the early phases, it is the hypothesis and the team that count, but from the seed stage onwards, the focus shifts to the first market signals: paying customers, functioning products, reliable traction. Series A is then about scalability, unit economics and a business model that works in a repeatable way.
This is exactly where many founders fail. Narrative and vision matter, but they are not sufficient. From Seed onwards, investors expect evidence of economic viability to sit alongside the story. It is therefore crucial to translate your own story into the logic of the respective financing phase.
The difference that determines success
A common mistake in fundraising is approaching investors in the wrong way. Not every investor is the same. The distinction between lead and follower is crucial. Lead investors structure the round, set the conditions and set the pace. Followers only get involved once a lead is in place.
If you spend too much time on followers too early, you will lose months. The search must therefore be clearly prioritized: first leads, then co-investors, and finally followers.
Choosing the right lead is also strategic. Traditional VCs are looking for rapid scaling and high returns. Corporate VCs, on the other hand, think more in terms of strategic synergies. For many insurtech models, especially capital-intensive or regulated ones, they are often the better structural fit.
Valuation, capital and dilution belong together
Investors always ask the same questions: How much capital will be raised, at what valuation and for what purpose? These questions cannot be answered in isolation. They form a system.
The valuation must match the metrics and the market. The amount of the round must be sufficient to reach the next milestone. And the dilution should remain within an expected range. Too much dilution signals risk, too little indicates that there is not enough capital.
Anyone who does not think this logic through properly will lose credibility early on.
Numbers alone are not enough
Good key figures are a prerequisite, but not a sure-fire success. Investors question whether growth is sustainable or only short-term. That’s why every metric needs a clear narrative: why does the model work and why will it continue to work?
Timing is just as important. Fundraising takes time, often longer than planned. If you start too late, you negotiate under pressure and lose negotiating power. Ideally, the process should begin many months before the end of the runway.
Fundraising is an orchestrated process
Successful fundraising does not follow a linear logic, but resembles a campaign. Conversations run in parallel, information circulates simultaneously, momentum must be actively built up.
A professional process begins long before the first investor meeting. All documents must be ready, not just the pitch deck and financial model. Additional, well-structured documents that explain the strategy, market, business model and key figures in a clear and consistent manner are crucial. They speed up the due diligence process and strengthen your own position.
Operational details are also crucial: a clean cap table, a realistic sales pipeline and consistent key figures. Errors in these areas immediately act as a warning signal.
Good communication is concrete, not creative
Investors do not respond to abstract visions, but to clarity. Successful communication follows a simple structure: problem, market, timing, differentiation, proof and plan. The more concrete, the better.
The difference between a vague description and a precise presentation often determines whether or not an investor continues to deal with a company.
Investor outreach requires sequencing, not broadcasting
Fundraising should be understood as a structured outreach process. Successful founders work with clear selection and sequencing. Potential lead investors are approached first. Only when there is genuine interest do other investors follow.
If you contact everyone at the same time, you lose control of the momentum. If you work in waves, you significantly increase the probability of a term sheet.
Fewer tools, more focus
The right infrastructure helps, but is no substitute for a strategy. More important than complex tools is the quality of the preparation and the approach. Databases for finding investors and professional data rooms are useful. Automated mass approaches, on the other hand, are rarely effective in the insurtech environment.
Precise fundraising
Fundraising in insurtech today is a precision game. Success depends less on the idea than on the fit between business model, investor and timing. Those who understand the process, take a structured approach and consistently argue in the language of investors will gain a decisive advantage in a market where capital has become scarcer and more selective.
Binci Heeb
Read also: Swiss InsurTechs are gearing up for London – and looking for capital, data power and sales experts
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