The funding round was led by Battery Ventures, with participation from Cross Creek, both new investors, and the company’s existing investors, Israel Growth Partners (IGP), KT Squared, and JAL Ventures. With this funding round, Novidea has raised $90 million to date.
The company, which supports more than 100 customers across 22 countries, has experienced hyper-growth in recent years, selling to insurance leaders across the globe. Novidea plans to use the investment to continue its journey to becoming an industry leader and to increase international market share.
Specifically, the funds will go to further developing its cloud-based, data-driven insurance platform, fortifying its customer success infrastructure, and expanding teams and offices across all target markets in the US, UK, EMEA, and APAC.
Novidea alleviates digital transformation pain points through innovation
Digital transformation is one of the most urgent pain points faced by insurance agents, brokers, MGAs, and carriers in every major market. Novidea’s insurance platform enables insurance agents, brokers, and MGAs to automate repetitive processes, drive operational efficiencies, and increase business resilience to stay competitive and provide a better customer experience.
“While businesses globally adjust to dealing with a pronounced increase in risk—driven by geopolitical, economic, and other events—the insurance industry has generally been underserved by technology relative to other sectors,” said Shiran Shalev, Partner at Battery Ventures. “Novidea has built a modern, comprehensive software suite which currently powers some of the world’s largest and most complex insurance groups, and we are excited to partner with them for their next phase of growth.” Shalev will join the Board of Directors at Novidea.
“Novidea has experienced unprecedented growth, driven by the demand in global markets to modernise the insurance distribution lifecycle and provide a better digital experience,” said Roi Agababa, CEO of Novidea. “We are thrilled to welcome Battery Ventures and Cross Creek as our newest partners in this round of funding, along with our existing investors.”
He added: “Through this transaction, Novidea will have the ability to expand our product suite, add further innovation to our platform, and deliver superior customer experience.”
Novidea saw 90% YoY growth in 2022
In 2022, Novidea reported a 90% year-over-year growth rate, a net revenue retention rate of 139%, expansion of employee headcount in all key regions where it does business. This has bolstered its overseas research and development (R&D) teams, investment in global customer-success infrastructure to streamline service delivery in all regions, and expansion of its senior leadership team with multiple strategic hires in marketing, HR, finance, customer success, and technology.
Advising on legal matters around the transaction were law firms Pearl Cohen for Novidea and Meitar for Battery Ventures.