Next Insurance Lands $250M Series D

Next Insurance, which aims to be the go-to insurance provider for any small business, has raised $250 million in a Series D round.

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The round, which values the company at more than $2 billion, was led by new investor CapitalG and existing investor Munich Re.

The goal is for Palo Alto-based Next Insurance to be the largest provider of small business insurance in the U.S., CEO Guy Goldstein said in an interview with Crunchbase News. 

“We have the technology that can provide a solution for every type of business … and we are leveraging this technology to apply to every business in the market,” Goldstein said.

The company will use the new funding to expand the team, grow the brand by investing in marketing and customer acquisition, and most importantly, complete the product so that Next Insurance can be a “one-stop shop” for any kind of business’ insurance needs, Goldstein said.

Currently the company has more than 100,000 customers and is available in all 50 states. More than 1,300 types of businesses can use Next Insurance, and the company is focused on making sure it can provide every type of insurance that every small business would need. The company expects to offer all types of insurance by the end of next year, Goldstein said.

In terms of growth, Next Insurance has seen its gross written premiums grow 133 percent year over year. The company, which is backed by investors including Ribbit Capital and TLV Partners, last raised money with a $250 million Series C in October 2019.

Next Insurance is among a number of insurtech companies getting large rounds of funding, including Hippo Insurance and Root Insurance. Also of note in the space is insurtech company Lemonade’s recent IPO.

Correction: A previous version of this article incorrectly stated that Next Insurance last raised money with its Series B round in July 2018. The story has been updated to reflect that Next Insurance last raised money with its Series C round in October 2019.

Illustration: Li-Anne Dias