Israeli-founded insurtech startup Next Insurance snags $250M Series E funding round at a $4 billion valuation
The insurtech space is hot again. Late last year, we wrote about Next Insurance after the Silicon Valley-based startup acquired Denver-based insurtech startup Juniper Labs in its first-ever acquisition. The Israeli-founded Next Insurance provides coverage for small businesses and entrepreneurs.
Historically, small business insurance has 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. Next Insurance changed the rule of the game. Using artificial intelligence and machine learning technologies to tailor insurance policies for its customers, Next Insurance delivers a more customized, affordable, and delightful insurance experience.
Today, Next Insurance announced it has closed a $250 million Series E financing round at a $4 billion valuation. This news is the latest development in a busy 6 months for the insutech unicorn during which it closed its Series D funding round ($250M) at a $2B valuation, announced two acquisitions, and added new strategic partners including Amazon Business Prime. Today’s news, in addition to these company milestones, solidifies Next Insurance as the leading provider for small business insurance. The startup has been on an upward trajectory since launch raising more than $880 million in funding to date.
The latest round was 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. In conjunction to the funding, Next Insurance also announced that FinTLV Ventures founder and managing partner Gil Arazi and Battery Ventures general partner Michael Brown will join as board observers.
Founded in 2016 by Israeli entrepreneurs Nissim Tapiro, Guy Goldstein, and Alon Huri, 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 decided 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.
“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.
“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.”