Israeli-founded Next Insurance snags $250M Series D funding to provide coverage for small businesses; now valued at $2 billion
Small business insurance has historically been served by large carriers that offer one-size-tries-to-fit-all products across large commercial, personal, and auto lines – none of which meet the specific needs of micro and small businesses. These generic policies eat up cash flow and don’t address the unique requirements of an independent carpenter, architect, or small retail boutique.
Enter Next Insurance, an Israeli-founded, California-based insurtech startup that provides coverage for small businesses and entrepreneurs, using artificial intelligence and machine learning technologies to tailor insurance policies for its customers. Next Insurance has built its digital product portfolio from the ground up using machine learning, data science, and modern customer support practices to deliver a more customized, affordable, and delightful insurance experience.
Today, Next Insurance announced it has raised $250 million in Series D funding at a company valuation of $2 billion. The funding round was led by new investor CapitalG, with the participation from existing investor Munich RE, a leading German insurance company. Just a year ago, Next insurance raised $250 million in Series C funding with Munich RE.
This news comes on the heels of Lemonade’s recent IPO and Hippo’s recent $150M round, proving millions of dollars are being pumped into the disruption of the stagnant – but fundamental – insurance industry, and investors, consumers, and businesses are reaping the benefits.
Next Insurance has built its digital product portfolio from the ground up using machine learning, data science, and modern customer support practices to deliver a more customized, affordable, and delightful insurance experience to small business customers. As a result, the company has been on an upward trajectory since launch.
Founded in 2016 by Israeli entrepreneurs Nissim Tapiro, Guy Goldstein, and Alon Huri in 2016. Next Insurance is an online-based insurance company for entrepreneurs and small businesses. The company’s services feature claims investigation as soon as possible, with many being decision within 48 hours that helps its clients to get transparency. Next offers general liability, professional liability, commercial auto, and, most recently, workers’ compensation coverage and says its policies are tailored, easy to understand, and easy to buy with instant, 24/7, online access. Next employs a team of 85 people in Israel with the rest of its 200-person team based in the U.S.
“We aspire to help businesses thrive by delivering phenomenal insurance products and experience,” said Guy Goldstein, co-founder and CEO of Next Insurance. “Insurance is a market primed for a new approach – one that believes it is a social good and cares for its customers. We believe we have the right team, the right approach and the right products to enable us to lead the shift in this industry, and we are excited to have CapitalG joining the ride.”
“Next Insurance is modernizing insurance for small business owners — making it fast and simple to get broad, customized coverage,” said Sumi Das, partner with CapitalG. “We believe that there is an opportunity to use technology to transform the small business insurance experience in the U.S. and build a national insurance leader. Next Insurance has the right team and capabilities to capitalize on this vision and is well on its way to doing so. We are proud to partner with Guy Goldstein and the Next team to help them accelerate their vision.”
Other investors in Next include Red Point Ventures, American Express, Ribbit Capital, and three Israeli funds TLV Partners, SGVC Fund, and Zeev Ventures.