NEXT
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 | |
| Private | |
| ISIN | 🆔 |
| Industry | Insurance |
| Founded 📆 | 2016 |
| Founders 👔 | Guy Goldstein (CEO) Alon Huri (CGO) Nissim Tapiro (CTO) |
| Headquarters 🏙️ | , , |
Area served 🗺️ | USA, all states |
Key people | Effi Fuks-Leichtag, CPO Michelle Cheung, CCO Teodora Gouneva, CFO Sofya Pogreb, COO Eran Liron, CSO Melanie Chase, CMO |
| Products 📟 | General Liability, Professional Liability, Commercial Auto, Hired & Non-Owned Auto, Workers’ Compensation, Tools & Equipment, Errors and Omissions (E&O), Business Personal Property |
| Members | |
Number of employees | 1000.[1] (2022) |
| 🌐 Website | www |
| 📇 Address | |
| 📞 telephone | |
NEXT is an American small business insurance company. It was formed in 2016 and is headquartered in Palo Alto, California. The company operates digitally and sells insurance policies directly to its customers online.
History[edit]
NEXT was founded in 2016 by Guy Goldstein (CEO), Alon Huri (CGO), and Nissim Tapiro (CTO). A year later, in 2017, the company started operating its insurance business.
Prior to NEXT, the three founders founded another company called Check that was acquired by Intuit in 2014 for 360 Million USD[2].
Business Model[edit]
NEXT started to operate as an insurance agency but later shifted to a carrier model[3]
[4].
The company's business model is to be a one-stop-shop for small business insurance. According to the founders, the company decided to focus on small businesses because other insurance companies didn't focus on this market[5]. The US small business market is estimated at $140 billion dollars and is relatively fragmented and with the largest players hold only 6-7% of the market each[6].
Next offers lines of insurance to more than 1,300 classes of business[6].
Next's policies are backed by Munich Re which also invested in the company[7].
In March 2021, NEXT partnered with Amazon to provide insurance for Amazon Prime Business members[8][9]
Business performance[edit]
As January 2022, the company has over 300,000 business customers. In 2021 NEXT generated $650 million in gross written premium (GWP), up from $200 in 2020[10].
In March 2021, the company had over 200,000 business customers.[11]
In February 2020 Next reached GWP of $100 million and doubled this number to $200 million by February 2021. In March 2021 Next acquired AP Intego which has $185 million in active premium.[12]
Funding[edit]
As of March 2021, the company raised 881 million USD, in 6 rounds, with a current valuation of 4 billion USD[11]
[12]. The last funding round, of 250 million USD, doubled the company's valuation which previously was 2 billion USD[13]. The company’s series C valued Next Insurance at more than one billion USD, making it a "Unicorn"
[14][15].
The corporate venture capital of the reinsurance company Munich Re led the company's A and C series.
CapitalG (formerly Google Capital), Alphabet's independent growth fund, also led Next Insurance's D series.
The E series was led by FinTLV and Battery Ventures.
Technology[edit]
The company is leveraging AI algorithms to enable businesses to get a direct quote without using 3rd party. This process is done online without human intervention and completed immediately. The usage of AI algorithms is a characteristic of some of the Insurance-Tech companies that were established in recent years and aimed to cut the cost of processing client data and perform the underwriting process manually. A similar model exists in companies like Lemonade and Root.
When NEXT started to operate in 2017 it offered policies via a Facebook Messenger chatbot. The service was offered to personal trainers[16]. As of 2021, the bot is no longer available.
Acquisitions[edit]
On December 10th, 2020, NEXT announced that it acquired Juniper Labs, a Colorado-based startup focused on AI tools and predictive analytics for the insurance industry.[17][18]
On March 3rd, 2021, NEXT announced the acquisition of AP Intego, a digital insurance agency providing a suite of small commercial insurance products, which reportedly manages $200 million in premium. Next insurance reported that the acquisition added 160 employees, and 75,000 small business customers and a leading partner network with access to over 10 million small businesses.[19][20][21]
See also[edit]
References[edit]
- ↑ "Former Airbnb and PayPal executive joining NEXT Insurance as CFO ahead of potential IPO". Calcalist. 2022-01-13. Retrieved 2022-01-13.
- ↑ "Intuit to buy Check Inc for $360 million". Reuters. 2014-05-27. Retrieved 2020-09-29.
- ↑ "VC Daily: Full-Stack Insurance Startups Lead Way to Public Markets". The Wall Street Journal. 2020-12-01. Retrieved 2020-12-23.
- ↑ Neale, Faith Roberts; Drake, Pamela Peterson; Konstantopoulos, Theodoros (2020). "InsurTech and the Disruption of the Insurance Industry". Journal of Insurance Issues. 43 (2): 64–96. JSTOR 26931211.
- ↑ ""People called it a bubble when Next Insurance raised at a $1 billion valuation too"". Calcalist. 2021-04-01. Retrieved 2021-04-01.
- ↑ 6.0 6.1 "Up 3-Fold In 2019, Next Insurance Vies With Berkshire Hathaway's biBERK In $140 Billion Market". Forbes. 2020-03-02. Retrieved 2021-04-01.
- ↑ ""NEXT Insurance Plays Down Going Public"". Barron's. 2021-04-06. Retrieved 2021-04-06.
- ↑ "Amazon will market Next Insurance digital coverage for SMEs". GeekTime. 2021-03-25. Retrieved 2021-04-01.
- ↑ "Insurtech partners with Amazon on small business insurance proposition". Insurance Times. 2021-03-31. Retrieved 2021-04-01.
- ↑ "Fintech Startup NEXT Hires Former Airbnb Executive as CFO". The Wall Streen Journal. 2022-01-13. Retrieved 2022-01-13.
- ↑ 11.0 11.1 "Insurance startup doubles valuation to $4 billion in 6 months". Fortune. 2021-03-31. Retrieved 2021-03-31.
- ↑ 12.0 12.1 "Next Insurance raises $250M, doubling its valuation to $4B in under a year". TechCrunch. 2021-04-01. Retrieved 2021-04-01.
- ↑ "Next Insurance raises $250 million, valuation exceeds $2 billion". Reuters. 2020-09-23. Retrieved 2021-04-01.
- ↑ "Next Insurance Raises $250 Million From Munich Re". Wall Street Journal. 2019-10-07. Retrieved 2021-04-01.
- ↑ "Next Insurance raises $250M from Munich Re, becomes a unicorn". TechCrunch. 2019-10-07. Retrieved 2021-04-01.
- ↑ "Personal Trainers Can Now Buy Policies from Next Insurance via Chatbot on Facebook". Insurance Journal. 2017-03-15. Retrieved 2020-12-24.
- ↑ "As Next Insurance makes its first acquisition, insurtech looks energetic". TechCrunch. 2020-12-10. Retrieved 2020-12-12.
- ↑ "Next Insurance purchased data analytics firm Juniper Labs in its first-ever acquisition". Business Insider. 2020-12-12. Retrieved 2020-12-12.
- ↑ "Next Insurance to acquire AP Intego in a potential $500 million deal". Calcalist. 2021-03-03. Retrieved 2021-03-03.
- ↑ "Investors still love software more than life". TechCrunch. 2021-03-06. Retrieved 2021-03-07.
- ↑ "Next Insurance to Acquire Affinity Agency AP Intego". Insurance Journal. 2021-03-03. Retrieved 2021-04-01.
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