Israel’s Parametrix Insurance, the specialist provider of so-called ‘downtime insurance’, has raised $17 and a half million in funding from venture capital firms, including FirstMark Capital and F2 Ventures.
Parametrix’s offering is designed to protect companies from financial losses associated with downtime: when cloud providers, ecommerce services, payment gateways, CRM systems and others go down.
The company claims that its parametric offerings pay out 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.
The offering is based on Parametrix tracking the availability and performance of third-party IT services internationally, collecting data and metrics every day. This data set then forms the basis for its predictive modelling and risk assessment algorithms.
“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 digitisation and on-line services means Parametrix is well positioned to be the leading company of this market,” said Jonathan Saacks, managing partner at F2 Venture Capital.