SA insurance company Momentum Metropolitan is partnering with a local venture capital (VC) company and a VC from the UK to develop innovative financial products and services.
Momentum Metropolitan (MMH) exponential managing partner Carol Atkinson (pictured above) revealed to Ventureburn earlier this week that it has outsourced funds to 4Di Capital and Anthemis (in the UK) to develop new fintech and insurtech solutions.
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Each fund has invested in around 10 startups since their creation, she said. She did not reveal the names of the startups that MMH has indirectly invested in, via the two VCs.
“Our integration efforts have focused on ways to leapfrog forward and partner with capabilities that do not currently sit within the insurer value chain, focusing on collaborating to the benefit of both the startup and MMH,” said Atkinson.
Momentum Metropolitan has outsourced funds to 4Di Capital and Anthemis to develop new fintech, insurtech solutions
In a short emailed Q&A, Atkinson responded to questions on what the insurance company is looking for when it invests in startups.
What insurtech and tech startups has the insurance company currently got agreements with? What do these agreements entail?
MMH tackles their interactions with startups through either VC investments or integration efforts to benefit all parties.
Our VC funds have been outsourced to our partners 4Di Capital (in South Africa) and Anthemis (in the UK) with a focus on fintech and insurtech startups.
We have also considered small investments on balance sheet, however in light of the nature of a startup we believe that they need the space to be able to grow through business unhindered.
Our integration efforts have focused on ways to leapfrog forward and partner with capabilities that do not currently sit within the insurer value chain, focusing on collaborating to the benefit of both the startup and MMH.
Which insurtech companies has the insurance company invested in?
The VC funds have a mandate to fund early stage startups and therefore follow the typical series rounds. Each fund has invested in around 10 startups since their creation.
Are you looking at investing in any more startups in the next few months?
The VC funds are continually looking for opportunities and their respective investment periods have not yet run out.
What kinds of solutions in insurance are you currently looking at?
The Internet of Things (IOT) is an interesting topic for us along with new engagement and acquisition models.
What does the company consider when choosing who to work with?
Entrepreneurs can either make or break a business, good solid entrepreneurs have the capability to be able to spot the opportunity and then be able to really get the solution to work.
A unique set of skills are also needed to continue to grow a business and pivot the business where needed.
Also important is to be able to prioritise where and what to go after, these types of decisions are of high importance in delivering within the collaboration with a corporate.
How important is BEE in choosing who to work with?
The startup market is diverse and has many opportunities to transform the market, but in our case it’s not a hurdle rate to have a minimum black ownership.
And although we do not have a minimum black ownership hurdle, we have invested in exciting startups with black founders.
Featured image: Momentum Metropolitan (MMH) exponential managing partner Carol Atkinson (Supplied)
