SAN FRANCISCO — Newfront, which operates a technology-driven insurance brokerage, has raised over $100 million in funding, valuing the company at $500 million. The company’s lead investors are Founders Fund and Meritech Capital.
The company plans to use these funds to invest in its platform and expand the service.
“We are fortunate to have built a strong and thriving business over the last three years with industry-leading talent and the resources and guidance from some of the most successful innovators in American history,” said Spike Lipkin, Newfront’s CEO. “We’ve spent this time building our internal platform and resolving many of the complex operational challenges associated with running a technology-driven brokerage. With this solid foundation, we are looking towards significant and sustained growth over the next eight quarters.” Kevin Hartz, an early investor in PayPal and founder of billion-dollar businesses like Xoom and Eventbrite, compared Newfront to PayPal and Xoom, saying “Newfront is one of those incredibly rare businesses that has the opportunity and the team to rebuild an industry that is crucial to the economy that today provides a subpar client experience. The future is bright for Newfront.”
While every business in the US depends on insurance to protect workers, reduce risks, and comply with legal requirements, for more than a century the process of securing insurance coverage and mitigating risk has not fundamentally changed. Newfront rebuilt the brokerage model using a combination of software and experts to provide clients with a more transparent, efficient, and data-driven approach to risk management.
Newfront has grown into one of the nation’s top 100 brokerages since its founding three years ago. The Company’s book more than tripled in 2019 and will more than double in 2020, despite the COVID-19 pandemic. Lipkin attributes the rapid growth to a team that blends experience from insurance industry leaders like Alliant, HUB, and Lockton with executive experience from technology industry leaders like Uber, LinkedIn, and Intuit. Garth Hamilton, former Chief Sales Officer at HUB International, says he joined Newfront because “Newfront assembled the right team with the right vision and experience to bring about the change our industry so desperately needs.”