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Floodbase, a specialist in parametric flood risk, has raised $5 million in investment funding, in a round led by Ecosystem Integrity Fund (EIF) with participation from Pulse Fund, with the company planning to use the funds to accelerate the development of its flood insurance programs.
Led by its CEO, Bessie Schwarz, Floodbase is a parametric platform that is used for insuring uncovered flood risk.
Floods are among the most common and pervasive natural disasters, yet 83% of global economic flood loss over the past decade was uninsured, Floodbase highlights.
Looking back at Hurricane Helene from last year, the event alone caused an estimated $75 billion in economic damage, mainly due to flooding.
Season after season, businesses and local governments face constant financial uncertainty, as well as extensive costs from flood damages, lost revenue, and recovery expenses.
With flood intensity and frequency expected to rise, addressing uninsured risks and securing rapid access to funds during floods is crucial, Floodbase notes.
Bessie Schwarz, Co-founder and CEO of Floodbase, commented: “Flood insurance has typically been limited to direct property damage, which only represents a fraction of the overall economic loss.
“We’re enabling a financial safety net that can cover any economic loss associated with a flood event. Not only does this remove uncertainties around what’s covered, the fast and flexible liquidity is a game changer for those managing the aftermath.”
Schwarz added: “With the growing demand for new flood insurance programs, we are thrilled to partner with EIF to accelerate our growth. We’ve known EIF for a long time and are excited to formalize our partnership. With their support, we’ll continue to lead and empower the market to close the global flood protection gap.”
Sasha Brown, Partner at Ecosystem Integrity Fund, said: “New solutions are urgently needed to adapt to an increasingly volatile climate. The frequency and severity of floods is growing, adding to the already tremendous global flood protection gap. Floodbase can power a new category of flood insurance products and has become the preferred platform for its insurance partners. We are thrilled to be partnering with the company to help accelerate the growth of their critical resiliency offering.”
Pulse Fund Founder and Managing Partner, Tenzin Seldon, added: “By funding adaptation projects and cutting edge climate tech companies like Floodbase, Pulse Fund aims to bolster resilience and enhance the economic security of communities. Floodbase’s platform enables a much needed, new category of flood insurance products at a time when historic flood events, and the financial devastation they cause, are becoming the norm.”
Floodbase, which was co-founded by Schwarz and Dr. Beth Tellman, previously raised $12 million in a Series A funding round in early 2023.
According to Floodbase, since its Series A round in 2023, the company has become the preferred partner for a number of different of re/insurers, including Swiss Re Corporate Solutions, Liberty Mutual Re, and AXA Climate.
Floodbase has now raised $17 million in venture capital, which includes investments from Collaborative Fund, Floating Point, Lower Carbon Capital, and Vidavo Ventures.
Floodbase raises $5m in funding to advance parametric flood insurance solutions was published by: www.Artemis.bm
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