Floodbase receives $5m investment to help accelerate flood insurance development

Led by Ecosystem Integrity Fund (EIF), with participation from Pulse Fund, the investment enables the parametric platform to accelerate the development of flood insurance programs amid a large protection gap.

Floods are the most common and devastating natural disasters, yet 83% of global economic flood losses over the past decade were uninsured, Floodbase highlights.

In 2024, Hurricane Helene alone caused an estimated $75 billion in economic damage, primarily due to flooding.

Businesses and local governments face constant financial uncertainty and immense costs from flood damage, lost revenue, and recovery efforts.

With flood intensity and frequency expected to rise, addressing uninsured risks and securing rapid access to funds during floods is crucial, Floodbase states.

“Flood insurance has typically been limited to direct property damage, which only represents a fraction of the overall economic loss” said Bessie Schwarz, Co-founder and CEO of Floodbase.

She continued: “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”.

According to Floodbase,since its series A in 2023, the firm has become the preferred partner for re/insurers including Swiss Re Corporate Solutions, Liberty Mutual Re, and AXA Climate.

Schwarz added: “With the growing demand for new flood insurance programs, we are thrilled to partner with EIF to accelerate our growth. We’ve known EIF for a long time and are excited to formalize our partnership. With their support, we’ll continue to lead and empower the market to close the global flood protection gap.”

Floodbase, co-founded by Bessie Schwarz and Dr. Beth Tellman, has now raised $17 million in venture capital. Investors include Collaborative Fund, Floating Point, Lower Carbon Capital, and Vidavo Ventures, highlighting the company’s success and the importance of diversity in tech innovation.

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