2026 marks a turning point for European InsurTech. After years of rapid expansion, the market is entering a new phase, one defined not by the number of deals but by their quality. In the first nine months of 2025, 47 transactions were completed across the region, worth about €511 million. That compares with 61 deals and more than €820 million in 2024. The tempo has slowed, but the fundamentals are strengthening.

What we’re seeing is a healthy recalibration. Investors are no longer chasing volume; they’re backing platforms with substance, those built on cloud-native systems that enable AI-driven decisioning, instant claims and payouts, embedded APIs, and compliance with DORA and the EU AI Act. This is a more selective market, where resilience, scalability, and regulatory alignment matter more than ever.

Europe continues to punch above its weight. In Q2 2024, the region accounted for a record 35% of global InsurTech deal flow, reflecting its depth in data-rich B2B models and technical excellence.

At Upliift, we see this evolution as a positive one: a sign that European InsurTech is maturing into a more disciplined, durable ecosystem ready for its next chapter.

The Real Challenge: alignment, rather than access to capital

As conditions tighten, founders are discovering that capital is no longer the main constraint. The real challenge is alignment. Investors remain active, but priorities have shifted. Profitability, resilience, and long-term value creation now matter more than rapid scaling. With new regulatory obligations under DORA and the EU AI Act, and clients expecting measurable ROI and operational stability, sustainable growth now requires both innovation and strategic stability.

This shift has brought many founders who’ve spent years building trusted, specialised platforms to reassess their options. Many are looking for partners who share their time horizon and respect the DNA of their business rather than those chasing the next exit.

The limits of traditional investment paths

I often get approached for advice on where to start when looking for investment. From the outside, it’s easy to think that all investors are the same. Whether it’s Private Equity, Venture Capital, Trade Sales, or MBOs, the market seems to offer many options. But the reality is that these paths couldn’t be more different, and most don’t align with a founder’s long-term goals.

Founders of specialised InsurTech companies often find themselves in this confusing position. They’ve considered an exit or even entered the process, only to realise that none of these investment options fit their vision or values. It’s like trying to fit a square peg into a round hole. The result? Undervaluation, reduced returns, and uncertainty about the company’s future.

Venture and Private Equity investors often expect rapid growth and fast returns, which come with higher risks and a greater chance of failure. Studies show that around 20% of leveraged buyouts backed by PE firms fail within ten years.

Succession planning is no easier. Many family-owned businesses struggle to pass leadership to the next generation, and 70% fail during this transition. Even when succession works, the financial return for the exiting owner is often limited.

While there’s no shortage of investment options, finding one that truly safeguards both your company’s value and its vision is rare, and that’s where the right partner makes all the difference.

Permanent Equity: Built for the long run

One approach that stands out for specialised InsurTech software businesses is Permanent Equity.

Many founders in this space are mission-driven. Selling a company isn’t just about the payout; it’s about protecting its legacy, its team, and its culture. That’s where Upliift’s Permanent Equity model aligns perfectly.

Permanent Equity means companies are acquired and held indefinitely. Unlike traditional PE or VC models, this approach isn’t driven by exit timelines. It’s designed for sustainable growth and long-term value creation, building strong, independent companies that thrive over time.

Building for the long term: The Upliift and Codeoscopic partnership

The experience of Codeoscopic, one of Spain’s leading InsurTech companies in the Upliift portfolio, demonstates what this looks like in practice.

For over 15 years, Codeoscopic has supported nearly 1,700 brokerages and 50 insurers with a suite of SaaS platforms that simplify distribution and analytics. After years of venture backing, CEO Ángel Blesa began looking for a partner who shared his long-term vision rather than another short-term investor. He found that alignment in Upliift, whose Permanent Equity approach matched Codeoscopic’s mission and values.

“From the very first contact, we noticed something special – a friendly, professional approach with a long-term vision,” says Ángel. “Upliift quickly understood Codeoscopic’s trajectory over the last 15 years and, above all, where we want to go in the future.”

Unlike traditional investors, Upliift invested the time to understand every layer of the business: technology, operations, people, and potential. The process was straightforward and collaborative, and it uncovered opportunities for improvement that left the company stronger and more resilient.

Since the partnership began, Codeoscopic has expanded its API capabilities, AI-driven solutions, and data analytics, reinforcing its leadership in Spain while laying the foundation for sustainable European growth. Together, both teams are developing initiatives that will support long-term innovation and international expansion.

“With the help of Upliift, we have redoubled our commitment to remaining a leader in technology for the insurance sector,” Ángel adds. “We are very optimistic, to be honest.”

Codeoscopic’s journey illustrates what makes Permanent Equity different. It is a collaboration that enables growth without losing identity or culture. It provides a balance between stability and ambition that is rare in today’s investment landscape.

Not all Permanent Equity is created equal – what to watch out for

It’s important to understand that Permanent Equity isn’t always as simple as it may seem. While some investors promise to “buy and hold forever,” their approach can often be a one-size-fits-all model that doesn’t work for every specialised software business. This can lead to three key challenges:

• Undervaluation: Companies can be undervalued from the start, leaving founders at a disadvantage
• Lack of growth investment: After the buyout, some investors don’t reinvest in the business, leaving it to rely on recurring revenue without supporting innovation or growth
• Risk to customer loyalty: Raising prices without adding real value risks alienating customers and damaging long-term loyalty.

Being aware of these potential pitfalls is crucial to making informed decisions about which Permanent Equity provider.

Securing the future

For InsurTech software founders who want to scale sustainably while protecting what makes their business unique, Permanent Equity from the right partner offers something more than just capital. It protects your legacy, your people, your customers, and your reputation, while giving you the freedom to stay involved and continue shaping your company’s direction.

With the right partner, you can grow confidently, at your own pace, without compromising what you’ve built.

Let’s talk

If you’re an InsurTech founder thinking about your next chapter, whether that means scaling your company, stepping back from daily operations, or securing its long-term future, we’d love to connect.