Funding: Next Insurance Secures $250m

Next 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. 

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