Floodbase Secures $5 Million Investment to Revolutionize Flood Insurance Solutions Worldwide

Floodbase, a pioneering platform focused on providing insurance against uncovered flood risks, has recently secured a $5 million investment led by Ecosystem Integrity Fund (EIF), with additional support from Pulse Fund. This substantial funding will enable Floodbase to accelerate the development of innovative flood insurance solutions, crucial in a changing climate where flooding incidents are becoming increasingly prevalent and severe.

The Need for Comprehensive Flood Insurance

Flooding is known to be one of the most common natural disasters, yet astonishingly, over 83% of global economic losses from floods over the past decade remained uninsured. The catastrophe of Hurricane Helene in 2024, which resulted in approximately $75 billion in damages, primarily due to flooding, exemplifies the urgency of addressing this issue. As communities grapple with escalating recovery costs and heightened financial risks from floods, the call for robust flood insurance solutions is paramount.

Bessie Schwarz, the co-founder and CEO of Floodbase, articulated the company’s mission by stating, "Flood insurance has typically been limited to direct property damage, which only represents a fraction of the overall economic loss. We’re enabling a financial safety net that can cover any economic loss associated with a flood event. Not only does this remove uncertainties around what’s covered, the fast and flexible liquidity is a game changer for those managing the aftermath."

Expansion and Strategic Partnerships

Since its Series A funding round in 2023, Floodbase has experienced impressive growth, operating in over 40 countries and enabling more than 9,000 flood insurance policies. The company has established fruitful partnerships with leading re/insurers such as Swiss Re Corporate Solutions, Liberty Mutual Re, and AXA Climate. These collaborations have positioned Floodbase as the industry standard in the realm of flood risk insurance, utilizing over a decade of peer-reviewed scientific research to develop its platform.

Floodbase’s continuous monitoring of flooding events globally empowers it to offer tailored flood insurance programs across various industries and geographical regions. The recent infusion of capital from EIF will further enhance this capability, fostering development in response to a growing demand for innovative flood insurance solutions.

Commitment to Climate Resilience

Sasha Brown, a Partner at EIF, emphasized the importance of new solutions in light of a volatile climate, stating, "The frequency and severity of floods is growing, adding to the already tremendous global flood protection gap. Floodbase can power a new category of flood insurance products and has become the preferred platform for its insurance partners. We are thrilled to be partnering with the company to help accelerate the growth of their critical resiliency offering."

Pulse Fund’s Founder and Managing Partner, Tenzin Seldon, highlighted the focus on enhancing community resilience and economic security through investments in cutting-edge climate technology, stating, "By funding adaptation projects and cutting-edge climate tech companies like Floodbase, Pulse Fund aims to bolster resilience and enhance the economic security of communities."

Breaking Barriers in Venture Capital

Interestingly, this investment also underscores Floodbase's impressive track record, especially given the persistent underfunding of women-led startups. In 2023, only 2% of venture capital was directed towards companies founded by women, a figure that further declined to 1.9% in early 2024, according to PitchBook data. Co-founded by Bessie Schwarz and Dr. Beth Tellman, Floodbase has successfully raised $17 million in venture capital thus far, including backing from Collaborative Fund, Floating Point, Lower Carbon Capital, and Vidavo Ventures, challenging prevailing trends and promoting diversity in the tech innovation landscape.

About Floodbase, EIF, and Pulse Fund

Floodbase stands out as a parametric platform designed to insure uncovered flood risks, employing over a decade of cutting-edge science. The platform not only safeguards large corporate clients and public sector entities against previously uninsurable flood-related economic loss but also collaborates with organizations like FEMA and the UN to respond to significant flooding events.

Ecosystem Integrity Fund focuses on early growth-stage companies committed to environmental sustainability across diverse sectors such as renewable energy and climate resilience. Similarly, Pulse Fund specializes in climate technology investments, particularly in emerging markets.

In conclusion, the partnership between Floodbase and its new investors marks a transformative milestone not only for the company but also for the global field of flood insurance, paving the way for a future where communities are better equipped to handle the economic repercussions of flooding disasters.