According to the people who asked not to be identified because the information is private, the Berlin-based insurtech startup is looking to raise several hundred million dollars. According to the sources, Wefox could finalize the terms of the fundraising as soon as the next few weeks.
Wefox's valuation would nearly double from last year, when it raised $650 million in a Series C round that valued the company at $3 billion. Existing investors include Mubadala Investment Co. of Abu Dhabi, Salesforce Ventures, Ashton Kutcher's Sound Ventures, and Horizons Ventures of Hong Kong billionaire Li Ka-shing.
The latest fundraising comes against a difficult backdrop for the technology industry, with startups around the world struggling to attract capital as investors avoid riskier bets. The good times are over, according to Sequoia Capital, and the world is falling apart, according to Lux Capital.
There is no guarantee that the discussions will result in an agreement, and the terms of Wefox's fundraising could change, according to the sources. Wefox's representative declined to comment.
Wefox was founded in 2014 by Julian Teicke, a former Groupon Inc. sales manager, and entrepreneurs including former Deutsche Bank AG analyst Fabian Wesemann. According to its website, the company provides insurance products in markets such as Germany, Italy, and Switzerland.
Wefox has carved out a unique niche in the insurtech space by distributing its insurance policies through a network of agents rather than selling directly to consumers as some other startups do. Munich Re AG provides reinsurance coverage for Wefox's policies as well as know-how and infrastructure.