PALO ALTO — Next Insurance, an online provider of small business insurance, has raised a $250 million funding round led by FinTLV Ventures and Battery Ventures.
Other investors participating include: CapitalG (Alphabet’s private equity fund), 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.
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.
“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.”
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.
Founded in 2016, Next has headquarters in Palo Alto and has hired 180 new employees in 2020.
“This latest round of financing is a validation of our vision which is to make it dramatically easier for small business owners to get the insurance coverage they need by removing friction from the customer experience,” said Guy Goldstein, co-founder and CEO of Next Insurance. “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. We’re not done improving the lives of small business owners, but we’re proud of what we’ve accomplished thus far.”