Newfront, a digital insurance brokerage platform, announced a $200 million investment co-led by Goldman Sachs’ Growth Equity business and B Capital this week.
The new capital brings Newfront’s valuation to $2.2 billion. The company plans to use the funding to grow its technology teams. This news follows Newfront’s merger with ABD in August.
Newfront’s platform makes risk management, employee experience, insurance and retirement solutions easy and more cost-effective for companies and private clients. By leveraging a combination of industry professionals and in-house technology, Newfront makes insurance and employee benefits less tedious while saving clients time and money. Customers can easily log into the platform to view their policies, download certificates, file or check on claims and more. The platform also makes insurance application and renewal easy by having it all online and carried over year to year.
Since Newfront merged with ABD, the company has seen a fair amount of growth. It added 200 employees, launched a new client dashboard, refined benchmarking capabilities and achieved profitability after record-breaking growth, all in just seven months.
“The nature of risk has changed drastically over the past century but the insurance industry has not modernized to meet these new challenges,” Newfront co-founder and CEO Spike Lipkin said in a statement. “This investment furthers Newfront’s commitment to building the modern platform for clients, insurance professionals and trading partners.”
With the new investment, the San Francisco-based company plans to hire for new technology roles and focus on expanding data-driven insights for its clients. Currently, the company is hiring for 97 roles across departments, with the majority of hires being in engineering. Newfront also plans to invest in specialized client resources and experts as well as expand its business across the country.
Additional investors subscribed to the $200 million round include Y Combinator, Index Ventures, Bloomberg Beta, XYZ, Susa Ventures, Pruven, Propel, Vetamer, Altai and Doordash CEO Tony Xu, among others. Existing investors Founders Fund and Meritech Capital also contributed to the round.
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