Altai Ventures Launches Differentiated Fund to Help InsurTech and FinTech Founders Reinvent Financial Services

Altai Ventures (“Altai”), an early-stage venture capital firm, today announced the closing of Altai Ventures Fund II, LP (“Altai II” or the “Fund”). The fund finished with $53 million in total commitments, surpassing its goal of $50 million.

Investors in Altai’s latest fund consisted of leading financial and institutional Limited Partners (LPs), including Bain Capital Ventures, Century Equity Partners and LPs across property and casualty insurance, life insurance and pensions, insurance brokerage and commercial banking.

“One of the things that attracted us to Altai is that our investment philosophies are very aligned. At Bain Capital Ventures, we help build iconic companies, not just back them. The same can be said for the team at Altai – they like to roll up their sleeves and work together with startup founders,” said Matt Harris, partner, Bain Capital Ventures. “What also attracted us to Altai was their operational experience and knowledge of the InsurTech space. We look forward to working with them on early stage opportunities and incubations in this space.”

Altai Ventures, which has offices in Westport, CT and New York City, specializes in InsurTech, FinTech and financial services enterprise software. The mission of Altai is to empower extraordinary founders to reinvent financial services through technology. Altai Ventures invests primarily in Series Seed and Series A rounds, where they can leverage their operational expertise, deep industry knowledge and strategic LPs to drive immediate, meaningful value creation.

“We believe deeply in a principles-driven business model with customer centricity at its heart, and as a result we have constructed a platform that can drive significant and differentiated value for our founders and strategic partners,” said Oleg Ilichev, founder and managing partner of Altai Ventures. “Financial institutions represent a multi-trillion dollar industry that is still in the early stages of technological transformation. Now that we have closed this new fund, we look forward to working with inspiring entrepreneurs and our strategic LPs to solve some of the biggest challenges in financial services.”

Altai’s investments are primarily focused on the North American market, with investments in the range of $200K – $500K for Seed rounds and $1M – $3M for Series A rounds. Some of the companies Altai has supported and provided strategic guidance to include:

• EvolutionIQ, a leader in AI-powered claims guidance helping injured and disabled people return to the workforce (tripled revenue three years in a row)
• LULA, an integrated suite of insurance infrastructure tools used to build and maintain insurance programs (registered over 900% year-over-year revenue growth in 2022)
• Newfront, a technology-enabled commercial insurance and benefits brokerage, which raised $200 million in its Series D round ($2.2 billion valuation)

Along with its core venture capital strategy, Altai also incubates businesses that focus on unaddressed pain points in the market. Last year, Altai partnered with Accelerant, Bain Capital Ventures and Runyon Design to launch Reserv, a third-party claims administrator (TPA) that uses AI and automation technology to bring efficiency and simplicity to the labor-intensive claims processing process.