We hear about a lot of Insurtech companies stepping up to one of the most lucrative industries on the planet, and in that sector operate more than a few Israeli startups looking to sell enterprises cyber insurance, but Parametrix argues that enterprises forget to insure the true soft spot of the organization: cloud infrastructure.
Two weeks, and the money is in the bank
It may have started before, but during 2020 most small to large enterprises accelerated their transition to cloud environments, thus increasing their dependence on the digital infrastructure. When cloud providers, ecommerce services, payment gateways and CRM systems among many others go down, their customers suffer both financially and operationally due to significant direct revenue losses, customer SLA compensation, expenses related to reputational damage and diminished productivity, according to the company.
The Parametrix system continuously monitors third-party IT services around the world; using the collected data to identify IT downtime in a “thousandth of a second”. The company developed models that detect and predict IT downtime, with the aggregated data being used later for risk assessment. According to Parametrix, coverage starts just one hour after purchasing a policy.
When downtime triggers are hit, the company promises to pay out in full within 15 days, saving customers from going through long and tiring claims processes. Additionally, in case of downtime, Parametrix provides compensation without requiring proof of damage and without limiting where the money can be spent - allowing customers affected from IT downtime to use the money for data restoring, improved security, or even as compensation to their customers.
“The business world’s dependence on cloud solutions is rapidly accelerating. To help them hedge this external risk, we created a new category in the insurance market by introducing reliable protection from the cloud downtime incidents that inevitably occur“, said Yonatan Hatzor, CEO at Parametrix Insurance. The Parametrix product is kind of unique in that sense, most other insurance agencies won’t even include or may even cancel coverage during downtime, and even if they do compensate losses, the process is often very long and can take months.
Today (Wednesday), Parametrix announces the completion of its Series A round, bringing in a total of $17.5 million in funding from F2 and FirstMark - closing its Israeli investment. FirstMark has previously invested in a few familiar names, including StubHub, Discord, Airbnb, Shopify, and the list goes on.
Met at an entrepreneurship program, and joined the man behind 10Bis
Parametrix was founded in 2019 by CEO Yonatan Hatzor, COO Ori Cohen, and CTO Neta Rozy. The trio met during the ZELL entrepreneurship program at the IDC in Herzliya. Rozy immigrated to Israel to join the military as a lone soldier, and says about herself that already from a young age she was interested in developing and programming. Following her army experience, Rozy went back to the U.S. and started working the developer life, only now to find herself CTO of a fast growing company. Cohen, a serial entrepreneur herself, had already danced in the startup limelight, with the founding of her previous project: Gaia Evo Solutions.
The trio were joined by Tamir Carmel, the man behind the highly popular food delivery app, 10bis. After Carmel sold 10bis to Takeaway.com for $157 million, he joined the startup as co-founder and Chairman of the company. As of today, Parametrix has 25 employees based in the company’s Tel Aviv offices.