About Next Insurance
Next Insurance is an online insurance startup company that offers coverage for small businesses and entrepreneurs in a variety of industries, protecting fitness instructors, general contractors, photographers, event planners, sports instructors, daycares, and many more. In addition, the insurtech business provides different insurance coverage categories such as worker’s compensation, general liability, errors and omissions (E&O), commercial auto, and several others.
Founded in 2016, the startup company claims it has more than 100,000 customers with service available every day, all year. Furthermore, the price for coverage across the different insurance categories and industries is a potential for the insurtech business to scale its gross written premiums and eventual products to its customers.
Jiffy, Kodak, GoDaddy, Lending Express, and several others are all partners of the startup company. According to Crunchbase data, the insurtech business acquired Juniper Labs and AP Intego within a matter of months.
$250 Million in Financing
On Wednesday, Next Insurance announced in a blog post that the business raised $250 million led by FinTLV Ventures and Battery Ventures, giving the insurtech startup company a valuation of $4 billion. In addition, this funding comes on the heels of a separate funding round of $250 million that was completed in September 2020 at a $2 billion valuation. This new funding brings the total venture capital raised for the business to more than $880 million.
In the blog post, Guy Goldstein, co-founder and CEO of the insurtech startup company, said, “We believe we’re leading the charge in the transformation of digital insurance. This latest funding round, which also doubles our valuation, is proof the investor community is confident in our vision. We are dedicated to simplifying the business insurance experience so that small business owners can shop for and buy affordable insurance policies that fit their exact needs completely online.”
The announcement of this new funding comes after a successful last year for Next Insurance. In a February 2021 blog post, Goldstein detailed the milestones the insurtech startup company reached in 2021. For example, Next Insurance was able to give back $2 million to small businesses, and the number of customers with more than one type of insurance coverage increased by 10 times.
With the new capital, Next Insurance will continue to develop new products to support small businesses and entrepreneurs.
The Insurtech Industry
Next Insurance is competing against other insurtech companies like Lemonade, Root Insurance, MetroMile, and Hippo, all of which have gone public. However, Next Insurance is able to differentiate itself from these other insurtech companies due to the fact the startup offers a variety of coverages for numerous types of businesses.
Grand View Research reported the global insurtech market was valued at $2.72 billion in 2020 and is expected to grow at a CAGR of 48.8% from 2021 to 2028.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.