Types of startups: Insurtech, Fintech, Legaltech, Proptech...

As technology evolves and enters different industries, it causes a transformation in them. Las startups, which are early-age or start-up companies that have great potential for growth and scalability, they incorporate new technologies to different sectors to improve processes or offer solutions to new needs. The terms Insurtech, Legaltech, Proptech, Fintech, etc. arise from the need to Name startups in relation to different sectors the ones they focus on. In other words, these are neologisms, which are new words that are created in a language when there is a new reality that needs to be called in some way. In the case of technology and business, it is common, as in this case, to combine terms in English to create new words. Thus, we can affirm that all these names that are used to refer to startups have to do with technology and that are born from adding the suffix -tech to a specific sectorHowever, even if we know where they come from, Are we clear about what each of these terms means? Do we know which ones exist? In some cases it is possible to deduce what they are referring to, but in others it is not so clear. Also, which are the most important or common? Today we review all of them and go a little deeper into the different industries, although we must bear in mind that the -tech group is constantly growing.➡ You may be interested in: Why are startups important?

Insurtech: Insurance + Technology

Technology and startups are key to innovation of insurance companies, since both represent the possibility of evolving and solving the challenges faced by the sector, and this is precisely what the term Insurtech refers to. The insurance sector has always had a close relationship with the financial sector, so the phenomenon Fintech fueled disruption in the insurance industry. There are those who even consider insurtech as a branch of FinTech. The largest investments in Insurtech by technologies there are cloud and mobile applications aimed at personalization and aggregation platforms and comparators, followed by Big Data, Artificial Intelligence, IoT, Blockchain and Cybersecurity. The strategic objectives that arouse the most interest in traditional insurers are the transformation and reinvention. Based on this vision and with the objective of providing a differential value proposition, Santalucía Impulsa was created in 2016. Since then, after more than 860 projects analyzed and 22 accelerated startups, the accelerator has been shown to be a consolidated model in specialization with Insurtech. The insurtech sector reacted quickly to the COVID-19 pandemic, which has led to the digital transformation process having accelerated a lot and demonstrated its importance. In addition, the recent Approval of the Spanish financial sandbox is a key factor in consolidating the insurtech ecosystem.➡ Insurtech Map by Santalucía Impulsa (May 2020).

Legaltech: Legal + Technology

The Legaltech ecosystem encompasses all companies and projects that pursue the common objective of Transforming legal services taking advantage of the technological and digital possibilities, media and tools offered by the Information Society. Of the Legaltech companies that have data, 30% currently use Blockchain, 26% Artificial Intelligence and/or Big Data, 23% Smart Contracts, Machine Learning and/or Cloud Computing, 20% use biometric tools, and 13% chatbots.Legaltech can be understood as the use of technology to market or provide legal services, from accelerating task management for lawyers and professionals in the sector, to reducing the need for a user to see a lawyer. During the last edition of Santalucía Promotes Startups Insurtechs were sought that could provide solutions in the Legaltech field and thus find tools that would facilitate the legal and contractual operations of Santalucía. The winners of the InsurChallenge Legaltech It was the startups Bigle Legal and 2BePart.➡ Legaltech Map from Finnovating (February 2020).

Fintech: Finance + Technology

Fintech is possibly The best-known neologism. It refers to all those activities and projects that involve the use of innovation and technological developments for designing, offering and delivering financial products and services: payment methods, service through chatbots, decision-making based on the analysis of large amounts of data, personalized services using artificial intelligence, etc. According to Bankinter, fintechs are here to stay and represent around 5% of the banking business, but their growth is being very fast. It provides innovation and a better user experience and mobility.➡ Fintech Map from Finnovating (March 2021).

Proptech: Property + Technology

Proptech refers to any company that uses technology to refine, improve or reinvent any service within the real estate sector, as reported on the page proptech.es, a platform promoted by an international Real Estate consultancy firm. Proptechs are revolutionizing a traditionally uninnovative sector and are offering diverse solutions, from housing promotion to industrialization and commercialization: services that help to buy and rent housing without intermediation, modernization of real estate portals, use of new technologies such as virtual reality, etc.➡ Proptech Map from Finnovating (March 2020).

Regtech: Regulation + Technology

The term regtech encompasses startups that use technology to improve all internal processes related to regulatory compliance, risks related to financial stability and integrity, security, data and customer onboarding. It is directly related to the banking and financial sector, since regtech solutions seek to make it easier for them to comply with existing regulations at all times, although they create solutions for companies in all sectors. Regtechs use technologies such as cloud, big data, blockchain, visual recognition and biometrics, artificial intelligence, etc. to help reduce risks, improve customer experience and comply with regulations.➡ Regtech Map from Finnovating (January 2020).

Wealthtech: Wealth + Technology

Weatlhtech comes from combining the words wealth and technology in English. These are startups that are transforming the investment and wealth management industry. Its objective is to manage and grow people's economic assets thanks to technology. The best-known products in this sector are Robo Advisors, which are a type of financial advisor or automated portfolio manager that uses machine learning to advise based on profitability, performance, risk, etc. as decided by each user. Other examples are the How many advisors, the microinvestment platforms and hiring, the digital brokers, reporting... and the list goes on!➡ Wealthtech Map from Finnovating (October 2019).

Other sectors: Healthtech, Edtech, Foodtech, Madtech...

The constant technological evolution means that all sectors, at a greater or slower speed, are embarking on digital transformation and incorporating technology. As a consequence, The -tech family continues to grow: new sectors and startups are emerging with innovative solutions. In addition to the sectors already mentioned, there are many others, such as the following:

• Healthtech (Health + Technology): Technology applied to medicine to help us improve the quality of our health. This includes everything from the diagnosis of diseases, to their subsequent treatment or even prevention.
• Edtech (Education + Technology): Application of technology to the world of education. Two different perspectives: as an academic branch (a discipline that analyzes and solves problems related to learning, teaching and social organization from a technological perspective) and as a practical application that uses apps and other types of technological tools to improve learning.
• Traveltech (Travel + Technology): It represents the changes that digital technologies are producing in the tourism and travel sector, which has innovation as one of its great challenges for the future.
• Agrotech (Agriculture + Technology): It seeks agriculture that integrates technological advances to maximize production while minimizing the environmental footprint.
• Femtech (Female + Technology): Originally, these were startups that used technology to improve women's well-being and health, but now it encompasses more, it relates feminism and technology.
• Foodtech (Food + Technology): Startups that apply new technologies and develop innovative products related to the gastronomic world and paying special attention to the end customer. Examples: kitchen robots, 3D printers that prepare dishes, dishes that calculate calories...
• Retailtech (Retail + Technology): One of the main objectives of retailtech is to bring the user experience in an online store closer to in-person purchases, as well as to get to know customers better.
• Madtech (Marketing + Advertising + Technology): Merger of Adtech and Martech. The combination of marketing, advertising and technology to provide added value and increase sales.
• Cleantech (Clean + Technology): Reduce negative environmental impacts through significant improvements in energy efficiency, sustainable resource use, or environmental protection activities. It is also known as Greentech.
• Biotech (Biology + Technology): They work to improve the quality of life of society: health care, treatment of diseases, biodegradable plastics, recycling...