PALO ALTO, Calif., March 31, 2021 /PRNewswire/ -- Next Insurance, the leading digital insurtech company transforming small business insurance, today announced a $250 million new funding round led by FinTLV Ventures and Battery Ventures with participation from CapitalG, Group 11, Zeev Ventures, Founders Circle and G Squared bringing the company's valuation to $4 billion and total funding raised to more than $880 million. The new financing follows a momentous six months during which Next Insurance announced two acquisitions, added new strategic partners, and doubled its gross written premium. FinTLV Ventures founder and managing partner Gil Arazi and Battery Ventures general partner Michael Brown, will join as board observers.
"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."
Small business insurance is an underserved market historically dominated by large insurers who cater to big commercial customers or individual consumers. The lack of small business policy customization combined with a customer experience that needs to be digitally transformed has left small business owners feeling neglected as they search for general liability, professional liability, workers' compensation and other must-have coverage. Until Next Insurance, there has been no company committed to providing customized policies for all small business needs underpinned by a technology-first approach. The result is a customer experience marked by 4.7 star rating from thousands of customers and a growing customer base of over 200,000.
"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."
With this round, Next Insurance will have raised $881 million to bring simple, affordable, and tailored insurance products to the American economy's most important growth engine: small businesses and the self-employed. Next Insurance's technology-first approach drives down costs by up to 30 percent when compared to traditional policies. Other examples of Next Insurance company momentum in the six months since the company announced its previous $250 million financing include:
- Named a small business insurance provider for Amazon's Business Prime small business customers.
- Acquired AP Intego, a leading digital insurance agency, with key partnerships with some of the largest small business software ecosystems in the U.S., including Intuit, Gusto, Square and Toast; doubled the size of Next Insurance's business; and expanded Next Insurance's customer base to more than 200,000 small businesses.
- Acquired Juniper Labs, an innovative provider of alternative open data and underwriting technology, to accelerate the development of enhanced machine-learning capabilities and tools to strengthen the omni-channel customer experience.
- Announced a record year in 2020 where the company:
- 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
"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."
With Next Insurance, insureds have access to USA-based licensed insurance advisors, tools and services like 24/7 access to certificates of insurance from a mobile device or computer and in-house claims filings where a decision is typically made within 48 hours. Learn more about Next Insurance and get a quote online today.
About Next Insurance
Next Insurance is transforming small business insurance with simple, digital and affordable coverage tailored to the self-employed. Next Insurance offers policies that are easy to buy in 10 minutes or less and provides 24/7 access to services such as Live Certificates of Insurance, Additional Insured, and more, with no extra fees. Revolutionizing a historically complicated insurance industry, Next Insurance utilizes AI and machine learning to simplify the purchasing process and drive down costs by up to 30% compared to traditional policies. Founded in 2016, the company is headquartered in Palo Alto, and with this new funding round will have raised a total of $881 million in venture capital funding and has been recognized by Forbes Fintech 50, JMP Securities InsurTech 50, and Forbes Best StartUp Employers. For more information visit NextInsurance.com. Stay up to date on the latest with Next Insurance on LinkedIn, Facebook, YouTube, Twitter and our blog.
About FinTLV Ventures
FinTLV is a global insurtech-focused fund. It partners with the best insurtech and fintech companies through all phases, with a bias towards later-stage deals. Its recent investments include leading or participating in investment rounds in some of the most prominent companies in these fields including Hippo Insurance, Next Insurance, and Unqork. The firm works closely with management teams and leverages its broad global network of insurance, re-insurance and insurtech companies to support its portfolio companies. The fund's limited partners include some of the world's leading insurance companies. For more information, visit http://fintlv.com/
About Battery Ventures
Battery partners with exceptional founders and management teams developing category-defining businesses in markets including software and services, enterprise infrastructure, online marketplaces, healthcare IT and industrial technology. Founded in 1983, the firm backs companies at all stages, ranging from seed and early to growth and buyout, and invests globally from six strategic locations: Boston; San Francisco and Menlo Park, Calif.; Herzliya, Israel; London; and New York. Follow the firm on Twitter @BatteryVentures, visit our website at www.battery.com and find a full list of Battery's portfolio companies here.
SOURCE Next Insurance