Nationwide has announced that it is expanding its venture capital investment fund to $350 million. The funding will be directed to high-growth-potential insurance and financial services start-ups that advance Nationwide’s strategy.
“We have had tremendous interest from start-ups to partner with us and help them accelerate their success – not only through our capital but also our brand and expertise,” said Nationwide CEO Kirt Walker. “Nationwide’s history is built on numerous breakthroughs. We’re excited about the opportunities to identify and accelerate insurtech and fintech solutions that will help better protect people, businesses and futures with extraordinary care.”
Nationwide’s venture capital initiative began in 2015. In 2017, the insurer announced the creation of a $100 million venture capital investment fund, focusing on insurtech and fintech start-ups that supported six areas:
“Nationwide’s initial venture capital investments continue to unlock new sources of value – both to Nationwide and the start-ups with which we partner,” said Mike Mahaffey, chief strategy and corporate development officer. “Our ventures team has developed and implemented a successful strategy of identifying the strongest companies in which to invest – ones that have already begun producing products and solutions to help our customers and distribution partners. These additional funds will enable the venture team to expand and accelerate that work.”
Since launching its venture capital initiative, Nationwide has invested in 25 companies and has helped facilitate 31 partnerships between start-ups and Nationwide business units.
“Our strong relationships with our business partners give us a clear advantage in our venture capital investments,” said Erik Ross, leader of Nationwide’s venture capital team. “We focus on start-ups that can help meet the ever-changing needs of Nationwide’s customers. In addition to delivering strong financial returns, the venture capital team has proven to be a trusted partner to Nationwide’s business units, collaborating with great entrepreneurs to bring mutually beneficial partnerships to life. Our business partners and our founders are our customers and best references. We’ll continue to do our best to help them both be successful.”
