Mads describes InsurTech as a dynamic space poised at a pivotal moment. Just as FinTech grappled with older systems until recently, many insurance companies still run on antiquated technology. “There’s tremendous potential to streamline and modernize operations, especially with the rise of AI applications.” 

Uncovering signals of a promising investment opportunity

ManchesterStory is currently in its seventh year of operation; last year, the firm recognized the need for a strategic upgrade in its approach to identifying new opportunities. “Historically,” Mads explains, “sourcing largely consisted of referrals and networking at industry events; given our reputation in the insurance field, founders often actively sought us out.” But despite the firm’s reputation and wealth of connections, ManchesterStory’s investment team didn’t have a comprehensive view of their investable universe. “Put simply, there were deals we were missing,” says Mads. “That meant getting proactive and doing more outbound. It meant relying on data alongside our organic interactions.”

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It’s no surprise that the firm places great value on team composition and experience when sourcing opportunities at the early stage. “It’s a fine line,” Mads explains, “because we’re looking for founding team members with deep expertise in insurance. Building in this space often requires at least one founding team member to have that expertise—but having spent 30 years with a single carrier isn’t necessarily advantageous, either.” Finding that “sweet spot” is critical—and challenging. After all, Mads adds, “insurance is about understanding risk and pricing it appropriately. But founding teams are composed of high-risk people. So, we’re looking for a distinguished category of people with just the right type of experience.”

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With Harmonic’s search functionalities, firms can fine-tune their startup searches, filtering by funding history, headcount, founder backgrounds, and hundreds of positive or negative keywords that align with their investment theses. In addition to prior experiences with specific carriers—“some carriers are simply more innovative than others,” after all—the team looks at growth metrics such as headcount or social traction to determine whom to engage with. “Once we’ve identified a founder with the right industry experience, how quickly is their team growing?” asks Mads. “That’s a signal we look for.”

Achieving comprehensive reach, fine-tuned precision, and meaningful results in company searches

With Harmonic, ManchesterStory tracks several different searches simultaneously; Saved Searches are constantly refreshed with the latest companies that match their criteria. “For example, we have a Saved Search to track all startups operating in insurance and InsurTech broadly,” Mads explains. “We have another that identifies recently founded companies that are adjacent to those industries, and a third for startups founded by individuals who’ve exited an InsurTech startup or the most innovative insurance carriers. Anytime someone from one of those carriers makes a move, we see it almost immediately.” 

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Investors also configure thematic searches so they can craft more targeted outreach. “For instance, there’s a growing sector called ICHRA,” explains Mads. “It allows employees to choose their own health plans and get reimbursed by their employers. We leverage Harmonic to go deep in that space and find every company that operates there.” By employing a variety of searches at once, ManchesterStory can explore the full scope of its investment opportunities and conduct high-conviction searches to ensure investors evaluate every relevant company. 

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“We monitor our deals every month, and this month we’ve achieved a historic high deal count. So, we’re seeing more deals than we used to. I think Harmonic has been instrumental in boosting both the volume and quality of our deal flow.”

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The firm built and refined its initial searches with the help of the Harmonic team. “The Account Management team has been outstanding,” says Mads. “Initially, they integrated a dataset of companies that advanced far enough in our pipeline to help train the algorithm.” Every company ManchesterStory has taken to Investment Committee trained the Relevance Score in its Harmonic instance; as individual investors “like” or “hide” companies over time, Harmonic re-tunes their Relevance Scores accordingly. “That data gives the platform the flavor of the companies we like,” explains Mads. “Over time, the companies it serves up front-and-center are more and more accurate.”

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Mads is convinced that Harmonic has enhanced both the volume and caliber of the firm’s prospective investments. “We’re increasingly aware of opportunities and have a more impressive roster of promising startups in our pipeline than in years past. Of course, we monitor our deals every month, and this month we’ve achieved a historic high deal count. So, we’re seeing more deals than we used to. I think Harmonic has been instrumental in boosting both the volume and quality of our deal flow.”

“I am confident that we’re seeing a much broader portion of the investable universe”

Harmonic users can turn on notifications to receive real-time email alerts about new additions to a Saved Search; they can also view them directly on the Harmonic dashboard. Mads has opted for email alerts because they integrate seamlessly with his existing workflow. “I must have 10 different searches that I’m tracking,” he explains. “Now every morning, I scan a single email for new entries to those searches and can quickly assess if there’s any exciting and urgent action to be taken. If an engineer at one of those insurance companies I’m tracking changes positions or seems to be embarking on a new venture, I know it as soon as they edit their LinkedIn profile. Harmonic delivers insights straight to my Inbox, feeding directly into a process I already have established. That’s invaluable.” 

Mads describes his conviction that the firm is seeing the breadth of its investable universe through Saved Searches, and in a timely manner through email alerts, as “comforting. The searches give us better coverage, and the daily updates keep that coverage fresh and relevant.” He recounts a recent anecdote: “Y Combinator took place last week, and naturally we make it a point to review InsurTech startups they fund. Thanks to Harmonic, we had already identified most of the companies in their most recent funding cycle before YC even announced them. That underscored that we’ve got much greater visibility than we used to.” 

Implementing a data-based re-engagement strategy

ManchesterStory relies on Affinity as their CRM, and benefits from an integration with Harmonic. The firm keeps a dedicated list in Affinity of the companies they found promising but didn’t move forward with because the timing wasn’t right. Harmonic’s Enrichment API automatically refreshes the firm's CRM whenever new data emerges about those key individuals or companies. Investors define the triggers—12 months or more since the company has raised, headcount growth, traction metrics on the company’s LinkedIn profile and website—and Harmonic alerts the firm when a startup meets those criteria. “These are signals that founders might be looking for a new infusion of capital,” Mads says. “Now we know whom to re-engage, and when.”

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According to Mads, the firm’s follow-up interactions have become more focused and impactful since implementing a data-based re-engagement strategy. “It’s been particularly valuable to have Harmonic’s enrichment data on hand when we’re gearing up for a big conference, for example,” he explains. “Investors have more meaningful interactions at industry events, because they have clarity on whom they want to connect with.”

Mads adds that the firm recently invested in a company that wasn’t actively raising, but its traction data was impressive and ManchesterStory had confidence in the team’s vision. So, they preempted the round. “Our investors—insurance companies—are their potential customers, so we bolster our conviction by speaking with them,” Mads says. “That information asymmetry is priceless. But it’s often the enrichment data—particularly headcount growth—that informs us of whom to consider for preemptive fundraising. And Harmonic has really assisted us there.”