Including this latest funding round, Next Insurance has raised a total of $881 million to date
On the heels of its recent acquisition of Waltham’s AP Intego and its new partnership with Amazon Prime Business, online insurtech Next Insurance has announced the results of its latest funding round in which it raised an additional quarter of a billion dollars bringing its total funding to date to $881 million. As a result, the company says it has double its valuation to $4 billion in just six months.
“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,” said Guy Goldstein, co-founder and CEO of Next Insurance. “It starts with developing a comprehensive digital product portfolio under one roof, continues with leveraging technology that improves the customer experience, and ends with a network of integrated partnerships that bring policy purchasing to the customer within the systems they already use. We’re not done improving the lives of small business owners, but we’re proud of what we’ve accomplished thus far.”
The $250 million funding round was led by FinTLV Ventures and Battery Ventures with participation from CapitalG, Group 11, Zeev Ventures, Founders Circle and G Squared. As a result of the investment, FinTLV Ventures founder and managing partner Gil Arazi and Battery Ventures general partner Michael Brown, will join Next Insurance as board observers.
In explaining FinTLV Ventures’ decision to invest, managing partner Gil Arazi noted Next Insurance’s embrace of machine learning is creating an opportunity to radically shift the legacy insurance industry’s dominance within the small commercial insurance sphere.
“Next Insurance’s full-stack approach to providing coverage for small businesses has created a radical paradigm shift in the legacy insurance industry,” said Gil Arazi, founder and managing partner at FinTLV. Ventures. “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. We believe that Next Insurance represents the future of Insurance.”
“Next Insurance is modernizing insurance coverage and the customer experience by creating greater access to digital coverage and reinventing the way policies are designed, sold and purchased for everyday small business owners,” said Michael Brown, general partner at Battery Ventures. “We believe Next Insurance is fundamentally changing the landscape of insurance and their passion for serving and supporting small businesses perfectly align with Battery’s investment goals. This is how you create an iconic insurance brand that customers love.”
In total, Next Insurance has raised approximately $881 million in funding
Next Insurance’s targeting of the small business insurance landscape, stems from its belief that this market has been historically underserved and “dominated by large insurers who cater to big commercial customers or individual consumers.” As a result, the lack of customizations options for small business policy customization was an opportunity where the company believes it can grow its market.
Next Insurance argues that until its arrival, no other company had been focused on providing “customized policies for all small business needs underpinned by a technology-first approach.” With that said, the company says that results are starting to prove its hypothesis, as evidenced in a 30% reduction in costs as compared to a traditional policy, a 4.7 star rating from thousand of customers, and a customer-based surpassing 200,000.
The company says that 2020 was a record year for the platform which increased the number of customers holding more than one policy by 10 times and tripled the amount of premium written by agent partners. It also says it achieved over $1 million in written premium in a single day for the first time ever.