In a recent discussion, Galen Shaffer of Eos Venture Partners emphasized the pressing need for startup insurtechs to demonstrate their viability within 18 months of securing venture capital. As the landscape of insurtech continues to evolve, it's crucial for these companies to prioritize short-term traction over their long-term aspirations.
Shaffer highlighted a significant shift in the investment mindset, urging venture capitalists to focus more on immediate results rather than just the overarching vision of insurtech startups. He pointed out that potential investors are increasingly looking for tangible progress and profitability sooner rather than later. This approach is seen as essential for driving better outcomes in the competitive insurtech market.
This change in focus could affect how insurtech companies structure their strategic plans. Startups might need to adapt by setting achievable short-term goals that demonstrate growth and operational effectiveness. This could include metrics like customer acquisition rates, partnerships, and revenue growth.
The insights shared by Shaffer are particularly relevant for entrepreneurs in the insurtech space who are currently seeking funding or navigating the venture capital landscape. It underscores an important call for these startups to align their strategies with the expectations of investors, which may lead to a more challenging funding environment for those who may not meet these new standards.
In summary, the landscape for insurtech investments is shifting, with an increased demand for demonstrable traction within a tighter timeframe. As this trend continues, it may reshape how startups approach their business models and growth strategies.
Original Source: https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3SK055:0-eos-shaffer-vc-insurtech-investments-must-show-traction-within-18-months/