Lead investors of the tech-driven insurance brokerage are Founders Fund and Meritech Capital
Newfront Insurance, a US-based technology-driven insurance brokerage, said that it has raised more than $100m in funding for modernising risk management for middle-market businesses.
The company, whose lead investors are Founders Fund and Meritech Capital, has recently taken its valuation to $500m.
Newfront Insurance plans to use the funds for investing in its platform, resources for clients, and for implementing its growth strategy.
Details of Newfront Insurance and its operations
Founded in 2017, the insurance brokerage through a team of around 200, is said to cater to more than 5,000 clients across several industries.
The company is said to have more than 60 brokers with risk management expertise, who can build industry-specific coverage plans for businesses.
Newfront Insurance CEO Spike Lipkin said: “We are fortunate to have built a strong and thriving business over the last three years with industry-leading talent and the resources and guidance from some of the most successful innovators in American history.
“We’ve spent this time building our internal platform and resolving many of the complex operational challenges associated with running a technology-driven brokerage. With this solid foundation, we are looking towards significant and sustained growth over the next eight quarters.”
According to the company, the process of getting insurance coverage and mitigating risk for businesses in the US has basically remained the same for more than 100 years. To address this, the company said that it had rebuilt the brokerage model by combining software and experts to offer a more efficient, transparent, and data-driven approach to risk management for clients.
Currently, Newfront Insurance claims to be among the top 100 brokerages in the US. Its book is said to have more than tripled last year and is expected to grow more than twice this year, in spite of the Covid-19 pandemic.
Newfront Insurance chief sales officer Garth Hamilton said: “Newfront assembled the right team with the right vision and experience to bring about the change our industry so desperately needs.”