Next Insurance has raised $250 million in new funding that has doubled its valuation to $4 billion.
The insurtech company, which provides small business insurance that is tailored to small businesses and self-employed folks, brings its total funding to date to over $880 million. The company had its round led by FinTLV Ventures and Battery Ventures with participation from CapitalG, Group 11, Zeev Ventures, Founders Circle and G Squared, according to a news release.
“This latest round of financing is a validation of our vision which is to make it dramatically easier for small business owners to get the insurance coverage they need by removing friction from the customer experience,” Guy Goldstein, co-founder and CEO of Next Insurance, said in a statement.
Next Insurance has had quite the past six months, the company announced it acquired AP Intego, a digital insurance agency, that doubled the size of Next Insurance’s business and expanded its customer base to more than 200,000 small businesses. The company also acquired Juniper Labs, which provides alternative open data and underwriting technology. Additionally, the company was tapped as a small business insurance provider for Amazon Business Prime small business customers.According to the press release, in 2020, Next Insurance has also done the following (bullets quoted from the press release):
- “Increased the number of customers holding more than one policy by 10x
- Tripled the amount of premium written by agent partners
- Hired 180 new employees
- Hit over $1 million in written premium in a single day for the first time ever”
The company will also bring on FinTLV Ventures founder and managing partner Gil Arazi and Battery Ventures general partner Michael Brown as board observers.
The company also claims its approach drives down costs by up to 30% compared to traditional policies.
“Next Insurance‘s full-stack approach to providing coverage for small businesses has created a radical paradigm shift in the legacy insurance industry,” Gil Arazi, founder and managing partner at FinTLV Ventures said in a statement. “This value proposition, combined with a differentiated focus on machine learning and growing an innovative product portfolio has created unstoppable momentum that is undoubtedly changing how small businesses shop and purchase insurance.”
In September 2020, FinLedger reported that the insurtech raised a $250 million round.