US insurtech company Next Insurance raises $250m in new funding round

Next Insurance, a US digital insurtech company which provides small business insurance, has raised $250 million in a Series E round to take its valuation to $4 billion.

The funding round was led by insurtech-focused fund FinTLV Ventures and Battery Ventures. It also saw the participation of CapitalG, Founders Circle, Group 11, Zeev Ventures, and G Squared.

To date, Next Insurance has raised more than $880 million, which includes $250 million secured by the company in September 2020.

Gil Arazi – founder and managing partner of FinTLV Ventures said: “Next Insurance’s full-stack approach to providing coverage for small businesses has created a radical paradigm shift in the legacy insurance industry.

“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.”

US insurtech company Next Insurance raises $250m in new funding round. Photo courtesy of Gerd Altmann from Pixabay.

Based in Palo Alto, California, Next Insurance provides small business insurance with simple, digital and affordable coverage customized to the self-employed. The online insurance provider for small businesses is said to offer policies that are easy to purchase within 10 minutes.

Established in 2016, Next Insurance leverages artificial intelligence and machine learning for easing the buying process and reduce costs by up to 30% compared to conventional policies.

Earlier this month, the online small businesses insurance provider signed a deal to acquire US-based digital insurance agency AP Intego that caters to small businesses.

In December 2020, Next Insurance made its maiden acquisition in the form of Juniper Labs, a provider of alternative open data and underwriting technology focused on small businesses.