Vesttoo

Company Overview

Snapshot

Founded in April 2018 by Yaniv Bertele, Alon Lifshitz, and Ben Zickel, Vesttoo operated with 11–50 employees. The company raised a total of $103.25 million across 6 funding rounds from 13 investors. In October 2022, Vesttoo completed an $80 million Series C financing round, led by Mouro Capital, valuing the company at $1 billion.

Business overview

Vesttoo specialized in data-driven risk-management solutions for the Property & Casualty (P&C) and longevity insurance markets. The company leveraged cutting-edge AI and machine learning stochastic algorithms to transfer general insurance, lapse, and longevity risk to the capital markets. Vesttoo provided insurers and pension funds with affordable, strategic risk transfer, while offering investors uncorrelated, high-yield investments. Its advanced risk-modeling technology aimed to transform how securities are structured, offered, and traded, providing an accessible and scalable alternative to traditional reinsurance within the Fintech & Insurtech sector.

Strategic signal

In August 2024, Vesttoo ceased operations, following a fraud scandal involving four senior executives and alleged fake letters of credit. This development indicates a complete operational shutdown and a significant negative impact on the company's trajectory, signaling to investors the critical risks associated with governance and financial integrity.

Company Intelligence Q&A

What was the primary reason for Vesttoo ceasing operations?

Vesttoo ceased operations in August 2024 due to a fraud scandal involving four senior executives and alleged fake letters of credit, which significantly impacted the company's reputation and operations.

What was the outcome of the investigation into alleged fraud at Vesttoo?

In August 2023, Vesttoo's board of directors dismissed co-founder and CEO Yaniv Bertele.

What significant management changes occurred at Vesttoo in August 2023?

In August 2023, Vesttoo appointed Ami Barlev as interim CEO, replacing Yaniv Bertele, who was in charge during a fake collateral scandal. This change followed the company's decision to lay off approximately 75% of its staff.

What was Vesttoo's valuation in October 2022?

In October 2022, Vesttoo completed an $80 million Series C financing round, which valued the company at $1 billion. This round was led by Mouro Capital and included participation from Gramercy Ventures.

What strategic partnership did Vesttoo announce in August 2022?

In August 2022, Vesttoo partnered with Clear Blue Insurance Group to deploy $1 billion in reinsurance capacity sourced from capital markets investors, aiming to bridge the gap between insurance and capital markets.