Israeli insurtech startup Sproutt, which specialized in digital life insurance in the U.S., has declared insolvency and is heading for bankruptcy as of early May 2024. The company, which had raised $38 million and once reached a $200 million valuation, is unable to pay its debts, including $2.2 million to Bank Leumi and $740,000 to suppliers, while also owing unpaid employee salaries. Strategic missteps led to heavy expenses and estimated losses of about $33 million, as its subsidiary Aktibo failed to generate sufficient revenue to cover high marketing costs. The company's downfall marks a significant failure in the insurtech sector.
