InsurTech - Record Fundraising for Q3 - Marlin & Associates
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December 2020 InsurTech – Record Fundraising for Q3 Dear Clients and Friends, Marlin & Associates (M&A) is pleased to share our latest market update on the Insurance Technology (InsurTech) sector. If there is any silver lining to this global pandemic, it’s been the spur it has caused to apply digital technologies to solving common industry challenges such as underwriting and selling policies, processing claims, and making better use of data. As we know, digital transformation of the insurance industry is not new. Many of these efforts have long been “in the works”. What is new is the increased sense of urgency by industry executives to take advantage of the benefits offered by such technologies. It’s about meeting customer expectations – and staying competitive in a rapidly evolving market. Our industry went through a rocky patch in the second quarter. Spring was tough. But as you will see in this report, the InsurTech market seems to have come rocketing back. Several InsurTech firms have outperformed the broader market. Root, MediaAlpha, and Duck Creek all went public in Q3, raising $724mm, $176mm, and $405mm, respectively. There is a stack of others eying the same route. Capital raising was also at an all-time high last quarter with volume reaching $4.0bn, more than four times the levels achieved in the first quarter and more than double the amount of capital raised in the second quarter of 2020. And, of course, all of this has led to more m&a as entrepreneurs, private equity firms and others look for sources of liquidity. As examples, PE-backed Zywave completed two roll-up acquisitions: ITC and Advisen. Sapiens, Israel-based public InsurTech, acquired Denmark-based TIA technology for $78mm. Marlin & Associates is one of the most active investment banking and strategic advisory firms, providing trusted counsel to middle-market companies worldwide that offer enterprise and vertical application software, services, data and analytics – including firms across FinTech ecosystem (InsurTech, BankTech, Payments, WealthTech, LegalTech, GRC), Digital Tech, Business Intelligence, and Market Intelligence. Over the course of 18+ years we have advised more than 200 companies in 27 countries. Please feel free to reach out to me (aagarwal@marlinllc.com) with any questions or to discuss this in further detail. We are keen to hear from you and happy to share what we are witnessing in the markets and how that could relate to your company. Anup Agarwal | Senior Managing Director | Marlin & Associates 570 Lexington Ave | 48th Floor | New York, NY 10022 o: +1 (212) 257-6043 | m: + 1 (917) 256-9880 aagarwal@marlinllc.com | Linkedin | www.marlinllc.com
InsurTech – Market Update
December 2020
© 2020 Marlin & Associates All Rights Reserved – Proprietary & Confidential
Marlin & Associates Securities LLC, a wholly owned subsidiary of Marlin & Associates Holding LLC, is a broker-dealer
registered with the Securities and Exchange Commission and is a FINRA/SIPC member firm (www.finra.org). Investment
banking and/or securities are offered through Marlin & Associates Securities LLC.InsurTech Companies Raised Record Funding in Q3 2020
Digital IPOs remain the Active international
transformation best option for well- capital raising and
continues ahead funded InsurTechs M&A environment
Data driven Point solution
providers are finding Insurance
solutions that distribution
elevate insurers’ faster product
adoption and are solutions attracting
product offerings a lot of investor
remain attractive attractive acquisition
targets attention
3Expect Continued Investment in Digital Technology Solutions
The ongoing pandemic has continued to prove that Illustrative Companies
insurers, MGAs, and agents/brokers need to fill their
Bindable is a CRM solution built to
technology gaps to effectively underwrite and sell a support brokers in offering a full
policy, process a claim, and to make use of the retail e-commerce experience
plethora of untapped data and remain competitive
Digital
transformation There are an estimated 760 InsurTechs globally(1) Insurity provides policy
administration, claims, billing,
continues ahead that have raised equity funding and offer solutions and analytics software solutions
for all functional areas in the insurance industry for P&C insurers
Improved customer / channel experience a top
INSLY provides insurance policy
reason for insurers to digitize their operations management software for insurance
And with the pandemic, systems and processes for brokers and agents, as well as
MGAs and wholesale.
managing a more distributed workforce are key
IBSuite platform offers claims and
policy admin digital solutions, as
well as product distribution and
sales capabilities.
Recent Transactions
Date Target Acquirer/Investor(s) Description
Zywave is an enterprise automation software for the employee benefits and property and casualty
9/17/20
insurance distribution industry.
Vertafore provides a cloud-based software featuring agency management, compliance, workflow, and
8/13/20
data solutions that simplify and automate the property and casualty insurance lifecycle.
Majesco provides technology, expertise, and leadership that helps insurers modernize, innovate and
7/20/20
connect to build the future of their business, offering claims and policy admin tech solutions.
Sources: Pitchbook; Public News
1) Willis Towers Watson, Quarterly InsurTech Briefing Q1 2020. 4Several Notable InsurTech IPOs in Q3 2020
Recent IPOs from Root Insurance and MediaAlpha, Illustrative Companies
raising $724mm and $176mm, respectively, signals
Lemonade is a full-stack insurer
that an IPO remains the best option for well-funded that offers homeowners and
InsurTechs due to a bullish stock market behavior renters insurance.
and high valuation multiples
IPOs remains the
best option for well- A handful of InsurTechs, like Duck Creek, Distribution platform that
facilitates consumers to shop for
funded InsurTechs Lemonade, SelectQuote, GoHealth and Fineos health, life and auto & home
have listed their shares publicly only within the last insurance policies online.
sixteen months.
GoHealth leverages ML
Other potential InsurTech IPOs down the road algorithms and helps individuals
include Hippo, Policygenius, Oscar, Cover Genius find the best health insurance
and Bright Health plan for their specific needs.
Fineos provides policy and claims
admin solutions for the life and
health insurance markets.
Recent Transactions
Date Target Acquirer/Investor(s) Description
MediaAlpha provides a platform that facilitates insurance carriers and distributors to target and acquire
10/28/20 (IPO)
customers.
Root Insurance develops and launches a direct-to-consumer personal automobile insurance and mobile
10/28/20 (IPO)
technology company.
7/23/20 (IPO) Duck Creek is a SaaS provider of core systems for the property and casualty insurance industry.
Sources: Pitchbook; Public News
1) Willis Towers Watson, Quarterly InsurTech Briefing Q1 2020. 5International Deal Activity Concentrated in Europe
There are a handful of fundraising and M&A Illustrative Companies
transactions recently that have been concentrated Spain-based. Provides a visual
mostly in Europe intelligence solution intended to
change the way customers connect
While the notable IPOs have all been US-based with insurance companies.
Active international InsurTechs, there are international InsurTechs like
capital raising and Wefox and PolicyBazzar that might look to IPO Israel-based. Provides an agency
M&A environment management platform designed to
According to Willis Towers Watson’s “Quarterly provide real-time business intelligence
InsurTech briefing Q3 2020,” 58% of financing for and seamless workflow.
the quarter came from companies outside the US
Sweden-based. Provides mobile
The breadth of InsurTech deals outside the US have insurance, insurance admin and micro-
spanned across each segment of the value chain insurance targeted at low-income
demographic.
from distributors to back-office automation to data
and analytics with no exact pattern, with many London-based. Developer of an AI-
penetrating the US market with better success than based marine insurance platform
US counterparts trying to expand globally (e.g., designed to provide behavioral insight
to insurers.
Duck Creek and Guidewire)
Recent Transactions
Date Target Acquirer/Investor(s) Description
Denmark-based. Offers end-to-end software for P&C and Health & Life insurers that enables them to
11/9/20
implement, host and management their digital solutions.
France-based. Digital insurance broker with a platform that optimizes insurance, personalizes offers
10/7/20
according to activity and its evolution as well as offers online subscription that is secure and safe.
German-based. Platform manages the insurance value chain including initial actuarial calculations,
08/19/20
underwriting, policy administration, customer service and claims management.
Sources: Pitchbook; Public News
6Data & Analytics Solutions Continue to Play an Important Part Across All Channels
of the Value Chain
Market need for data and analytics solutions to help Illustrative Companies
an insurer better price a policy, detect fraud, and
Convr provides an AI-based
eliminate the manual steps taken today to issue a decision automation platform for
policy or process a claim commercial P&C insurers.
Data driven
solutions that Increased adoption of AI and ML technologies have
elevate insurers allowed insurers to reduce lose ratios by better Insurdata captures, enhances,
product offerings predicting blind spots and analyzing more scores, and transfers peril-
remain attractive complicated claims specific exposure and risk data.
Behavior-based data models gathered through IoT,
wearables, or sensors to improve underwriting Root provides a usage-based
auto insurance platform for
decisions are being used to further personalize the individuals.
solutions
Quantemplate offers software for
managing insurance data,
analyzing risk and ensure
compliance.
Recent Transactions
Date Target Acquirer/Investor(s) Description
Flyreel provides an underwriting assistance platform intended to help insurance carriers make data-
11/17/20
based underwriting and policy decisions.
10/27/20 Human API provides a structured API for interaction with health data.
Concirrus provides an AI-based marine insurance platform designed to provide behavioral insight to
7/7/20
insurers.
Sources: Pitchbook; Public News
7Point Solutions Are Favored by the Market Today
Best of breed solution providers have been favored Illustrative Companies
by insurers due to their adeptness at solving specific
ClaimVantage offers life, health,
pain points of the value chain. and absence management
software solutions
Point
i t solution
l ti The attractive customer roster and growth have also
providers are finding made them attractive acquisition targets for larger
faster product InsurTechs looking to strengthen their product Proformex is a policy
adoption and are management platform offering
portfolio, and private equity investors looking for roll- data aggregation, analytics, and
attractive acquisition
targets
ups / platform plays. portfolio monitoring services
Fineos a claims administration provider acquired
Limelight Health to build their analytics capabilities Evari is a SaaS platform for
policy admin focused on the P&C
Bold Penguin acquired RiskGenius to provide market.
brokers with more robust policy pricing data.
PriorAuthNow is a platform that
connects payers and healthcare
providers to submit, monitor, and
complete prior authorizations.
Recent Transactions
Date Target Acquirer/Investor(s) Description
Insurance Technologies Corporation (ITC) provides marketing, rating and management software and
11/24/20
services to the insurance industry.
RiskGenius provides a policy review platform designed to connect insurance professionals to digital
10/6/20
knowledge.
Limelight Health provides quoting, rating, and underwriting solutions for group and voluntary employee
8/10/20
benefits.
Sources: Pitchbook; Public News
8Crowded Market for Insurance Distribution Technology Providers
There is an intense competition among insurance Illustrative Companies
distribution technology providers to be the conduit
Cover Genius provides insurance
through which insurers can count on as a source of distribution technology solutions
supply for their products for travel and retail markets.
Insurance Policygenius has raised $162mm to focus on
distributions
acquiring more buyers of insurance products
solutions attracting Hippo is a digital first provider of
a lot of investor Hippo recently raised $350mm to reach a larger home insurance options.
attention group of home insurance buyers in more states
across the US
Policygenius is an online
Many InsurTechs are striking partnerships like Hippo
po insurance comparison platform
did with SimpliSafe, as well as InsurTechs looking to primarily for rent and home.
be there at POS when customers purchase travel
and retail products, buy a new car, or take out a MediaAlpha provides a platform
mortgage that facilitates insurance carriers
and distributors to target and
acquire customers.
Recent Transactions
Date Target Acquirer/Investor(s) Description
11/9/20 CoverHound provides online insurance comparison platform for individuals.
Matic is a digital insurance platform that integrates with lenders and carriers to offer homeowners the
10/15/20
ability to analyze property data and compare insurance quotes with ease.
DealerPolicy is an online distribution platform for automotive insurance comparison that connects local
10/13/20
dealership customers to insurance providers.
Sources: Pitchbook; Public News
9InsurTech Landscape Is Still Fragmented with Companies Primarily Competing
Across Three Segments of the Value Chain
Data & Analytics / IoT for Pricing,
Policy, Claims and Payment Underwriting, Marketing, Distribution Distribution / Marketing Solutions
Automation and Claims Processing
Funding: $151mm NYSE: LMND Funding: $68mm
Funding: $60mm Funding: $4mm Funding: $28mm
Funding: $2mm Funding: $36mm ASX:FCL
Funding: $386mm Funding: $709mm Funding: $26mm
(Acquired by NYSE:GWRE NASDAQ: ROOT Funding: $43mm Funding: $64mm
CVC Capital) NASDAQ:EBIX
Funding: $7mm
Funding: $36mm Funding: $99mm
Funding: $6mm Funding: $96mm Acquired by a SPAC
Funding: $69mm
(Acquired by Funding: Undisclosed
Vista Equity) Funding: $443mm
Funding: $54mm Funding: $1bn Funding: $140mm
(Acquired by Insurity) Funding: $7mm
(NASDAQ:
(Acquired by (Acquired by Brown &
NYSE:DXC DCT)
GI Partners) Brown Insurance) (Acquired by
Funding: $6mm Roper Tech) Funding: $177mm
Funding: $46mm
Funding: $0.25mm
NASDAQ:SPNS (Acquired by Thoma Funding: $113mm Funding: Undisclosed
Bravo) (Acquired by Funding: Undisclosed Funding: $52mm
Great Hill Partners) Funding: $18mm Funding: $3mm
Funding: $77mm Funding: $55mm Funding:
unding: $40mm Funding: $105mm
Funding: Undisclosed Funding: Undisclosed Funding: $6mm
(Acquired by Bold
Penguin) Funding: $25mm
Funding: $129mm
Funding: $23mm Funding: $21mm
Unfunded Funding: $37mm
Funding: Undisclosed Unfunded
Funding: $41mm
Funding:
ding: $6mm
$6m Funding: $31mm
Funding: $37mm Funding: $44mm Funding: $17mm
Funding: $16mm
Funding: $50mm
Unfunded Funding: Undisclosed Funding: $10mm Funding: $20mm Funding: $50mm Funding: $12mm
Note: This is only a select list of companies. Some InsurTechs might serve multiple functions across the value chains.
If you would like your company added to this map, please reach-out to the M&A team. 10InsurTech Valuations Remain Robust with Strong M&A and
Financing Deal Activity
11Financing Volume Reached an All-Time High in Q3 2020
Total Capital Invested (in $mm)
Deal Count $3,959
0 2
0 178 1
163
163 $3,014 $2,919 1
0 148
148
138 139 138
138 $1,801 1
132 127
127
0 121 1
116
116 115
115 $1,684
108 106 107
0 $1,140 1
90
90 88 90 $1,594 $1,541 90
$1,417 $1,326 $1,359 8
0 75 $1,133
75
$868 $893 $899 6
0
$423 4
$293 $370 $343
0 2
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2016 2017 2018 2019 2020
Selected Transactions
2016 2017 2018 2019 2020
$400mm $97mm $650mm $635mm $724mm
$153mm $120mm $200mm $500mm $319mm
$50mm $63mm $500mm $360mm $405mm
$33mm $62mm $400mm $300mm $176mm
Source: PitchBook
12Financing Activity Pick Up Notably…With Several High-Profile IPOs (1 / 2)
Date Lead Investor(s) Target Target Location Target Company Description Funding Amount
Provider of home insurance services intended to offer affordable and modernized
11/24/20 Palo Alto, CA $350mm
coverage for homeowners.
Developer of an agency management platform designed to provide real-time business
11/24/20 Netanya, Israel intelligence and seamless workflow management for brokers, agents, MGAs, $15mm
bancassurance and corporate risk management.
Provider of comprehensive visual intelligence solution intended to change the way
11/17/20 Madrid, Spain $6mm
customers connect with insurance companies.
Developer of an insurance platform intended to make car insurance more affordable,
11/2/20 Chris Adelsbach London, UK
instant, and inclusive.
$30mm
Provider of online car insurance services intended to calculate insurance premiums
10/28/20 (IPO) Columbus, OH
based upon driver behavior.
$724mm
10/28/20 (IPO) Los Angeles, CA Operator of digital advertising platform intended to connect brands and consumers. $176mm
Provider of health insurance services intended to offer personalized health plans as per
10/21/20 Minneapolis, MN $105mm
customer needs.
Operator of digital insurance platform intended to connect local auto dealerships and their
10/13/20 Williston, VT $34mm
customers with an insurance agency.
Developer of an insurance distribution platform designed to protect the customers of the
10/12/20 Sydney, Australia $11mm
world's largest digital companies.
Operator of an insurance brokerage platform designed to offer tailor-made and
10/7/20 Marseille, France $24mm
competitive insurance services.
Developer of a cloud-based electronic prior authorization platform designed to offer
10/6/20 (Undisclosed) Columbus, OH
insurance authorization services.
$10mm
Developer of an online business insurance platform designed to transform the insurance
9/23/20 Palo Alto, CA $250mm
experience for small businesses.
Sources: PitchBook and Tracxn.
13Financing Activity Pick Up Notably…With Several High-Profile IPOs (2 / 2)
Date Lead Investor(s) Target Target Location Target Company Description Funding Amount
Developer of a product protection platform intended to provide personalized warranty
9/11/20 San Francisco, CA $40mm
plans for consumer durables.
Operator of a health insurance service platform designed to deliver the best healthcare
9/9/20 Minneapolis, MN $500mm
experience.
9/7/20 Stockholm, Sweden Provider of insurance services by utilizing mobile technology. $30mm
8/14/20 IPO Boston, MA Developer of insurance SaaS software. $405
8/13/20 Chicago, IL Operator of an online insurance platform intended to transform the insurance sector. $82mm
Provider of home insurance services intended to offer affordable and modernized
7/22/20 Palo Alto, CA $150mm
coverage for homeowners.
7/15/20 IPO Chicago, IL Provider of technology-based health insurance services. $914mm
Developer of an artificial intelligence-based marine insurance platform designed to
7/7/20 London, UK $6mm
provide behavioral insight to insurers.
7/7/20 Gurugram, India Developer of an aggregator platform intended to offer insurance products. $50mm
Operator of a property and casualty insurance company intended to transform the
7/2/20 IPO New York, NY $319mm
insurance business model.
Sources: PitchBook and Tracxn.
14M&A Activity Has Significantly Picked Up Over the Last Few Months (1 / 2)
Date Acquirer(s) Target Target Location Comments Enterprise Value
• Metromile offers personalized insurance customized to each driver
11/24/20 (Reverse Merger) Metromile Tempe, AZ $872mm
• Company was acquired via a SPAC and will list on the NASDAQ exchange
• ITC provides websites, agency marketing, rating and management software
11/24/20 Carrollton, TX • Acquisition further strengthens Zywave's position as a provider of SaaS solutions n/a
for the insurance industry
• Zywave provides cloud-based insurance distribution software
11/17/20 Milwaukee, WI • The combination of Zywave and Advisen with backing from Clearlake Capital $900mm
creates a buy-and-build platform in InsurTech
• Advisen provides data, media, and technology services for P&C insurance market
11/17/20 New York, NY • Advisen’s innovative data, media and technology solutions will amplify Zywave’s $60mm
existing product portfolio and accelerate its global footprint
• Tia Technology offers for P&C insurers comprehensive software solutions
11/9/20 Virum, Denmark • Sapiens will leverage the insurance domain knowledge of Tia's 200 employees to $78mm
further expand Sapiens P&C and L&P offerings
• Coverhound provides an online insurance marketplace
11/9/20 San Francisco, CA • The acquisition will enable Brown & Brown (NYS: BRO) to gain additional access to n/a
the fast-growing digital insurance market for both individuals and small businesses
• CodeObjects provides cloud solutions to the P&C space
11/6/20 Milpitas, CA • CodeObjects brings advanced AI technology which will enhance customer n/a
experiences across all Insurity solutions
• Livegenic provides real-time video solutions to P&C insurance organizations
10/6/20 Philadelphia, PA n/a
• The partnership will power the future of multi-industry, real-time field data collection
• RiskGenius provides machine learning solution to review insurance policies
10/6/20 Overland Park, KS • RiskGenius’ policy level data approach helps Bold Penguin’s Exchange impact in n/a
the quoting process
• Majesco is a core software provider for the insurance industry
9/21/20 Morristown, NJ • The transaction will allow Majesco to more effectively focus on long-term $729mm
investment and growth objectives
• Insurance Technologies provider of sales and regulatory automation solutions
9/14/20 Colorado Springs, CO • With the investment, Insurance Technologies will continue its investment in n/a
technological innovation, speed to market delivery, and building product suite
Source: PitchBook
15M&A Activity Has Significantly Picked Up Over the Last Few Months (2 / 2)
Date Acquirer(s) Target Target Location Comments Enterprise Value
• Vertafore provides software solutions for insurance agencies and carriers
9/3/20 Denver, CO • The acquisition represents Roper's strategy of buying up software companies in $5.35bn
niche markets with durable, long-term cash flow compounding ability
• Benefytt Technologies provides a software suite for health insurance industry
8/21/20 Tampa, FL • The company was acquired by PE firm Madison Dearborn Partners and financed $421mm
with ~$200mm in debt
• Limelight Health provides quote engine solution for health insurance professionals
8/14/20 San Francisco, CA • The acquisition will enable Fineos to deliver more product options as they $75mm
accelerate digital transformations and reduce reliance on legacy core systems
• Virtual MGA provides an in-house underwriting platform for insurance agencies
7/7/20 Lakeway, TX • The acquisition is a complement to Insurity’s cloud-based analytics and core n/a
system solutions
Source: PitchBook and Tracxn.
16Automation InsurTechs Are Trading Stronger Relative to Other InsurTechs
50.0%
40.0%
Nasdaq 37.7%
Policy, Claims and
Payment Automation
30.0%
31.8%
Data & Analytics /
IoT 23.1%
20.0%
S&P 500 13.3%
10.0%
Distribution /
Marketing Solutions
5.2%
0.0%
(10.0%)
(20.0%)
(30.0%)
(40.0%)
(50.0%)
Policy, Claims and Payment Automation Data & Analytics / IoT Distribution / Marketing Solutions Nasdaq S&P 500
Source: PitchBook, as of market close on December 7th, 2020; each company's stock performance is equally weighted in the corresponding index, except for S&P 500 and NASDAQ.
17Public Market Valuations Remain Robust for InsurTech Comparable Companies
(USD millions) Market Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin
Company Country Cap Value CY2020E CY2021E CY2020E CY2021E CY2020E CY2021E CY2020E CY2021E
Policy, Claims and Payment Automation
Guidewire Software USA $10,513 $9,840 13.2x 13.0x n.m. n.m. 6% 2% 10% 3%
Duck Creek Technologies USA 5,089 4,725 21.4x 18.4x n.m. n.m. n.a. 17% 4% 1%
Sapiens International Israel 1,506 1,548 4.1x 3.7x 21.1x 18.6x 17% 10% 19% 20%
Ebix USA 1,061 1,727 3.1x 2.5x 11.0x 8.4x (3%) 24% 28% 29%
Fineos Ireland 825 787 6.8x 5.5x n.m. n.m. n.a. 24% 11% 11%
Median 6.8x 5.5x 16.0x 13.5x 6.1% 16.5% 11.5% 11.2%
Data & Analytics / IoT
RELX (London) UK $45,567 $54,984 5.8x 5.4x 17.1x 14.9x (5%) 7% 34% 36%
Experian Ireland 32,838 37,063 7.1x 6.6x 20.2x 19.3x n.a. 7% 35% 34%
Verisk Analytics USA 31,616 34,832 12.5x 11.7x 24.9x 23.8x 7% 7% 50% 49%
Equifax USA 20,780 23,660 5.9x 5.8x 16.9x 16.2x 15% 2% 35% 36%
TransUnion USA 17,961 21,149 7.8x 7.3x 20.3x 18.7x 2% 6% 38% 39%
Fair Isaac USA 14,597 15,347 11.6x 11.4x 31.6x 31.7x 10% 3% 37% 36%
Pegasystems USA 10,334 10,442 10.1x 8.4x n.m. n.m. 14% 19% 0% 3%
CoreLogic USA 6,034 7,421 4.7x 4.6x 12.9x 12.7x (11%) 3% 37% 36%
Root Insurance USA 3,892 4,411 7.1x 4.7x n.m. n.m. 113% 51% n.m. n.m.
DFV Deutsche Familienversicherung Germany 382 432 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Quartix UK 234 223 6.6x 6.8x 21.5x 28.3x 4% (3%) 31% 24%
Median 7.1x 6.7x 20.2x 19.0x 6.9% 6.4% 35.1% 35.8%
Distribution / Marketing Solutions
Lemonade USA 5,190 4,667 50.4x 42.6x n.m. n.m. 38% 18% n.m. n.m.
SelectQuote USA 3,845 3,894 5.6x 3.9x 20.2x 14.3x 73% 45% 28% 27%
GoHealth USA 3,867 4,899 5.6x 4.1x 17.5x 12.3x n.a. 36% 32% 34%
MediaAlpha USA 2,190 2,441 4.4x 3.4x 44.8x 39.5x 37% 28% 10% 9%
ehealth USA 1,936 1,787 2.7x 2.1x 11.9x 8.8x 30% 29% 23% 24%
MoneySupermarket.com Group UK 1,789 1,780 3.9x 3.6x 12.7x 11.0x (8%) 8% 31% 33%
EverQuote USA 923 877 2.6x 2.1x n.m. 33.7x 37% 21% 5% 6%
GoCo Group UK 723 815 3.7x 3.3x 18.3x 15.1x 14% 11% 20% 22%
Median 4.1x 3.5x 17.9x 14.3x 36.6% 24.6% 22.8% 23.8%
Source: Company Public Filings and PitchBook, as of market close on December 7th, 2020
18Leading Advisor to FinTech, Digital Tech, Data and Analytics
Companies and Investors Worldwide
19Leading Advisor to FinTech, Digital Tech, Data and Analytics Companies and
Investors Worldwide
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(2017)
Gamechanger of the Year (US), Ken Marlin Boutique Investment Banking Firm of the Year
Middle-Market Investment Bank of the Year Cross-Border Deal of the Year (2016)
“Bringing on the Marlin & Associates team “The team at Marlin & Associates helped us get “We have been delighted with the service
remains one of our great decisions. The the best value for our company. They know the provided to us by Ken Marlin and his team. They
dedication of the team was on full display as we players and values of this industry at a level few have been diligent and thorough, and also a
approached this latest chapter for ClearStructure. can match. They guided us and brought multiple pleasure to work with. The Marlin team’s deep
The guidance, creativity and true value-add that highly qualified buyers into the process - knowledge of our industry makes them the
they brought to the table helped ClearStructure including FNZ, with whom we look forward to number one go-to firm when you want to sell your
achieve goals we didn’t think were possible.“ joining. We thank the Marlin & Associates team business. They have seen and managed more or
and look forward to working with them again in less every possible situation and know the play
the future.” book on how to deal with them. The process was
meticulously planned and executed.”
-Scott Turley, CEO of ClearStructure -Rob DeDominicis, CEO of GBST -Justin Wheatley, CEO of StatPro
22Clients Choose Us for Their Most Important Strategic Decisions (1/2)
Shelton, CT Toronto, Canada
Jersey City, NJ Barcelona, Spain Stamford, CT New York, NY
has been acquired by has been acquired by
has agreed to sell the MuniBrokers has been acquired by has agreed to be acquired by has been acquired by
business to
Lawrence, MA San Diego, CA
A portfolio company of A portfolio company of
New York, NY Bologna, Italy Mumbai, India Chicago, IL
Marlin & Associates acted as Marlin & Associates acted as exclusive Marlin & Associates acted as exclusive Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as
exclusive strategic and financial advisor strategic and financial advisor to strategic and financial advisor to exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial
to TABS Analytics Grapevine6 Inc. Hartfield, Titus & Donnelly advisor to Strands, Inc. advisor to Greenwich Associates, LLC advisor to Hanweck Associates, LLC
Pleasanton, CA
Denver, CO Danbury, CT Brisbane, Australia London, UK
a division of Greenwich Associates was
acquired by Orlando, FL has agreed
g to be acquired
q by has agreed to be acquired by
has received a majority equity has been acquired by
investment from
has received growth capital from
Livonia, MI Pittsburgh, PA
A portfolio company of
A portfolio company of
Lake Success, NY
Vancouver, BC Edinburgh, UK
New York, NY Marlin & Associates acted as
Marlin & Associates acted as Marlin & Associates acted as exclusive strategic and financial Marlin & Associates acted as exclusive
Marlin & Associates acted as Marlin & Associates acted as
exclusive strategic and financial exclusive strategic and financial advisor to ClearStructure Financial strategic and financial advisor to
financial advisor to strategic and financial advisor to
advisor to NinjaTrader Group, LLC advisor to Greenwich Associates, LLC Technology, LLC. Kore.ai
GBST Holdings Limited StatPro Group plc
Reston, VA London, UK
Wilton, CT has sold Preqin Solutions to
Chicago, IL Alpharetta, GA has been acquired by
has been acquired by has received a majority equity Shelton, CT
has received a majority equity investment from
investment from has acquired
Boston, MA
Mclean, VA A portfolio company of
New York, NY
A portfolio company of
A portfolio company of
Los Angeles, CA New York, NY
Marlin & Associates acted as Kansas City, MO
Marlin & Associates acted as exclusive strategic and financial
Marlin & Associates acted as Marlin & Associates acted as exclusive Marlin & Associates acted as Marlin & Associates acted as
exclusive strategic and financial advisor to Private Client
exclusive strategic and financial strategic and financial advisor to exclusive strategic and financial exclusive strategic and financial
advisor to InRule Technology, Inc. Resources, LLC.
advisor to Points2Shop, LLC Zoomdata, Inc. advisor to TABS Analytics advisor to Preqin, Ltd.
23Clients Choose Us for Their Most Important Strategic Decisions (2/2)
London, UK
Charlotte, NC
has sold a minority equity interest in New York, NY
its subsidiary New York, NY has received an equity investment
New York, NY New York, NY
has received a $61mm from
has been acquired by investment from has received a $30 million has acquired
equity investment from
London, UK
to
Jacksonville, FL
Troy, MI Boston, MA San Francisco, CA New York, NY
Singapore
Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as
Marlin & Associates acted as
exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial
exclusive strategic and financial
advisor to TradingScreen Inc. advisor to SALIDO, Inc. advisor to SERMO, Inc. advisor to Zenmonics advisor to Rapid Ratings advisor to Aquiline Holdings LLC
Affiliate of
Darien, CT
Boston, MA New York, NY Toronto, Canada
has received an equity investment
has sold Financial Engineering has received an equity investment Chicago, IL from
Associates, Inc. to from
received a Addison, TX
series B investment led by has been acquired by
Received a $250mm credit
Dallas, TX Atlanta, GA facility from affiliate of
A portfolio company of
Boston, MA
Boston, MA & San New York, NY
Boston, MA White Plains, NY
Francisco, CA
Marlin & Associates acted as
Marlin & Associates acted as exclusive strategic and financial Marlin & Associates acted as Marlin & Associates acted as
Marlin & Associates acted as Marlin & Associates acted as
exclusive strategic and financial advisor to OptionsCity Software exclusive strategic and financial exclusive strategic and financial
strategic and financial advisor to exclusive strategic and financial
advisor to Tier1CRM advisor to Investment Metrics advisor to Think Finance
Empow advisor to MSCI Inc.
Hamilton, Bermuda
London, United Kingdom
A portfolio company of
Toronto, Canada
received an investment from Salt Lake City, UT San Mateo, CA
has sold the Atrium wireless and Port Talbot, United Kingdom
extranet infrastructure businesses to has been acquired by received a strategic
received an investment from
investment from
has been acquired by
London, United Kingdom
Geneva, Switzerland Chicago, IL Tokyo, Japan
Atlanta, GA
Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as Marlin & Associates acted as
exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial exclusive strategic and financial
advisor to TMX Group advisor to QuoVadis and ABRY advisor to OpenGamma advisor to Vizolution advisor to iTransact Group, LLC advisor to Xignite.
24Our Team Brings Relevant Transaction and Operating Experience
Ken Marlin
Michael Maxworthy Anup Agarwal Founder & Managing Member
Managing Director Managing Director
Tom Selby Aalap Merchant
Managing Director
Managing Director
Peter Manuselis Billy Adams
New York City
Toronto, Canada
Luke Hsieh Jordan Wittbrot
Al Sisca Sam Wilcox
Woolley Capital Partners
Samuel Martinez Neil Chadda
25Marlin & Associates
For more than 18 years, Marlin & Associates has been the domain expert - providing
independent and unbiased professional investment banking and strategic counsel to middle-
market enterprise and vertical application software, services, data and analytics – including
firms across the FinTech ecosystem (InsurTech, Bank Tech, Payments, Wealth Tech, Capital
Markets Tech, Digital Lending, RegTech), Digital Tech, Legal Tech, GRC, Business
Intelligence, and Market Intelligence.
Headquartered in New York City, with an office in Toronto, the Marlin & Associates team of
professionals has advised on more than 200 transactions in 27 countries. More than 20
transactions on which Marlin & Associates has advised have been recognized as “Deal-of-
the-Year”. The firm has won numerous awards including the “Middle-Market Investment
Bank of the Year,” “Middle-Market Financing Agent of the Year – Equity,” and “TMT Advisory
Bank of the Year.”
Marlin & Associates Securities LLC, a wholly-owned subsidiary of Marlin & Associates
Holding LLC, is a broker-dealer registered with the Securities and Exchange Commission
and is a FINRA/SIPC member firm (www.finra.org). Investment banking and/or securities
are offered through Marlin & Associates Securities LLC.
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