Hong Kong-based InsurTech OneDegree approached for SPAC

April 13, 2022 | Insurance Insider | Portfolio
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OneDegree, an InsurTech that insures digital assets, has been approached by investment banks to go public via a SPAC deal, its co-founder has said in an interview with Bloomberg.

The InsurTech, one of four to have a virtual insurer licence in Hong Kong, is looking to raise funding over the next few months, according to its co-founder Alvin Kwock.
OneDegree’s upcoming funding round will be used for its expansion plans, but the company said no firm plans had been made over whether it would go public via a SPAC deal.
Kwock told Bloomberg: “In the last four years, we have had fundraising pretty much every year. With the type of large market we are seeing, I do think there is a lot of interest coming from the investment community.”
OneDegree closed a $28mn funding round in August.
Alongside its SPAC news, OneDegree also recently announced a multi-year partnership with Munich Re.
The pair will launch OneInfinity, an insurance and technology product designed for digital-asset trading platforms, custodians, asset managers and technology providers.
Munich Re will provide the InsurTech with reinsurance capacity and support OneDegree’s technical underwriting, as well as commit to building modelling capabilities based on OneDegree’s centralised and decentralised finance incident database.
Becky Tam, general manager of digital asset insurance at OneDegree, said: "This is the insurance sector with one of the highest entry barriers because of the technical inter-disciplinary knowledge required.
“As a digital native insurer, OneDegree is uniquely placed to leverage such knowledge, as well as our insurance-based analytics capabilities, in creating this innovative product offering.
“We are thankful to all the industry players from the digital asset sector, blockchain service providers and cybersecurity experts to provide valuable advice for us in building the product.”