The Israeli startup Next Insurance has raised $250 million in a round of capital investment, which was led by FinTLV Ventures and Battery Ventures with the participation CapitalG, Group 11, Zeev Ventures, Founders Circle and G Squared., according to a press release from the company.
In addition to the funds raised, the Israeli startup announced that it will hire some 100 new employees for its research and development center in Israel. With the new funds, the expected valuation of the company now stands at $4 billion.
Next Insurance works in the field insurtech, which focuses on streamlining and efficiency in the insurance industry, and is considered a subdivision of fintech.
"The current round of funding is another confirmation of our vision, that is, to dramatically facilitate the process of purchasing insurance for small businesses, for every need they face, by removing unnecessary friction from the customer experience and making it stand out," said Guy Goldstein, co-founder and CEO of Next Insurance.
Regarding the process of insurtech and how businesses use it, Goldstein said that "It starts with developing a comprehensive digital product portfolio under one roof, continues to leverage technology that enhances the customer experience and ends with a network of partnerships that allow customers to purchase insurance policies from other systems they use. We have not finished improving the lives of small business owners, but we are certainly proud of what we have achieved so far."
Next Insurance has already accrued over 200,000 customers who bought their product. According to the startup, their insurtech reduces insurance costs by up to 30% compared to traditional insurance policies.
Noting the importance of their work, Michael Brown, General Partner at Battery Ventures, said that “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.”
“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,” Brown added.