The company is a player in the US insurtech space that’s trying to give insurance a tech upgrade in the same way neo-banks have done with banking.
Next Insurance, a US fintech start-up in the burgeoning space for insurance technology, has raised $250m in a round that values it at $4bn.
The investment doubles the company’s valuation from last September when it raised a previous $250m. It brings the total amount raised by the company to more than $880m.
Next provides insurance for small and medium-sized businesses through its online platform. It has emerged as one of the key players in the US insurtech space, which is trying to do for insurance what neo-banks have done for banking.
Some of its rivals and peers in this space are Lemonade, which is listed on the New York Stock Exchange, and car insurer MetroMile, which went public through a SPAC.
Next chief executive Guy Goldstein said insurtech companies like his are “removing friction” in how small businesses buy insurance cover.
“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,” Goldstein said.
“We’re not done improving the lives of small business owners, but we’re proud of what we’ve accomplished thus far.”
The latest round was led by FinTLV Ventures and Battery Ventures. Other investors CapitalG, Group 11, Zeev Ventures, Founders Circle and G Squared also contributed to the round.
Gil Arazi, managing partner at FinTLV Ventures, said that the traditional insurance industry has been in need of a tech facelift.
“This value proposition [from Next Insurance] 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,” Arazi said.
According to the company, it has doubled the number of premiums it has written over the last year.
It also recently acquired Juniper Labs and agreed to acquire AP Intego. Unlike some of its competitors, it hasn’t indicated that it has any plans to go public.