Most of the (slowly) growing number of staff from insurance incumbents now engaging with the InsurTech movement are understandably focused on what the ideas might do for their companies - whether as an enabler or a disruptor.
As this article reminds us, for the innovator themselves, funding is as much an issue as the product itself. Martyn outlines the need for more pre-seed VC funding (and how Forward Partners does this).
What role should we as the London Market be playing - via InsTech London, LM Innovation Exchange or some other route - to try and bring in more of this pre-seed VC support.
Answers on a postcard please.
Embracing propositions at the idea stage therefore requires a different VC model, one that serves to fundamentally reduce the key execution risks. The most obvious change, co-locating entrepreneurs with the investment team, not only alleviates an early cost issue for the entrepreneur, but for active investors allows proximity for hands on involvement and a continuous framework for informal governance. This basic level of model extension is well known and widely deployed…but is not enough.