$17.5M Round for Parametrix and Its First-of-Its-Kind Downtime Insurance Offering Led by FirstMark Capital
Funding to support rapid growth acceleration as demand soars for financial protection from outages caused by third-party, cloud-based service providers
TEL AVIV, Israel & NEW YORK, May 26, 2021 (Newswire.com) - 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 Ventures. The company's 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 the fast-growing Parametrix 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, e-commerce 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. The company's affordable parametric offerings payout 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 that 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 the company's predictive modeling and risk assessment algorithms which enable them to provide 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," added 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 online services means Parametrix is well-positioned to be the leading company of this market," noted Jonathan Saacks, Managing Partner at F2 Venture Capital.
About Parametrix
Parametrix, a first-of-its-kind insurtech company, ensures that companies with mission-critical services in the cloud can quickly recover from IT downtime events. The company's insurance offerings protect businesses from the significant financial damages incurred during outages caused by third parties such as cloud, e-commerce, payments, CRM and CDN service providers.
Based on the data generated by the company's innovative monitoring technology, they provide affordable parametric policies with fast payouts, short waiting periods, no usage restrictions and hassle-free processes. Parametrix is backed by some of the biggest insurers and reinsurers, including certain underwriters at Lloyd's of London, and has a rapidly growing partner network of insurance brokers in the U.S. and Europe.
To learn more, please visit www.parametrixinsurance.com.
About FirstMark Capital
FirstMark is a full-stack technology venture capital firm based in New York City. The firm invests early and can scale with companies as they grow, helping to accelerate the success of exceptional founders at every stage of their journey. They 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. The firm's proprietary, industry-defining Platform gives their 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 the 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 the fund's activity, visit f2vc.com.
Press contact: Tamar Belkin, VP Marketing at Parametrix, marketing@parametrixinsurance.com
Source: Parametrix