Next Insurance closes $250m financing round to make its vision for small businesses a reality
Next Insurance, the insurtech provider focused on providing cover for small businesses, has closed a $250 million series E financing round at a $4 billion valuation, taking its full funding to date to more than $880 million.
The funding was led by FinTLV Ventures and Battery Ventures, with participation from CapitalG, Group 11, Zeev Ventures, Founders Circle and G Squared. FinTLV Ventures founder and managing partner Gil Arazi, and Battery Ventures general partner Michael Brown, will join as board observers.
It caps a busy six months for the insutech unicorn, during which time it also closed a series D funding round for $250 million at a $2 billion valuation.
It has also acquired two businesses, AP Intego and Juniper Labs, and added new strategic partners including Amazon Business Prime.
Next stressed the challenges of acquiring insurance for small businesses, which are somewhat neglected by the large carriers who focus their attention on larger corporate clients.
Next said it has built its digital product portfolio from the ground up, using “machine learning, data science and modern customer support practices to deliver a more customised, affordable, and delightful insurance experience, tailored to small business customers.”
Arazi said: “Next Insurance’s full-stack approach to providing coverage for small businesses has created a radical paradigm shift in the legacy insurance industry.” Combined with its embrace of tools such as machine learning, it is “undoubtedly changing how small businesses shop and purchase insurance,” he added.
Brown added: “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.”
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