At a time when investments in Israeli businesses were only starting to stabilize following a precipitous fall from the pre-pandemic high, previously common mega funding rounds of $100 million or more have become rare. And now that Israel is embroiled in a war with Hamas, capital funding seems headed to an even more precarious footing.
Yet NEXT Insurance, a US-headquartered, Israeli-founded unicorn, just announced a $265 million strategic investment from Allstate Insurance and Allianz X.
Founded in 2016, NEXT disrupted the insurance industry with digital insurance packages tailored to specific underserved categories of small businesses.
Over half a million US small businesses currently use NEXT’s online platform to obtain essential coverage including general liability, commercial property, workers’ compensation and more. The company has its head offices in Palo Alto and its R&D center in Kfar Saba.
According to the announcement of the strategic investment, NEXT and Allstate will co-develop innovative one-stop-shop commercial auto insurance products to a target market of 33 million small businesses. With Allianz X, NEXT will expand its existing reinsurance relationship.
“We founded NEXT because we saw an opportunity to help millions of small and microbusinesses across the US and made it our mission to help entrepreneurs thrive,” said Guy Goldstein, CEO and cofounder of NEXT Insurance.
“Combining Allstate’s operational expertise, broad distribution network and strong brand awareness with NEXT’s capabilities will help NEXT’s unique platform bring new, innovative products to existing Allstate customers and the millions of underserved small businesses that want affordable, simple and connected protection,” said Mario Rizzo, president of property liability at Allstate. “Together, we will meet the full insurance needs of small businesses, delivered on the platform of the future.”
Nazim Cetin, CEO of Allianz X, added, “Small businesses are fundamental to every economy. NEXT Insurance understands the needs of this group deeply, and it has developed cutting-edge technology to address their common pain points. With Allianz’ deep expertise in this sector and NEXT’s technology, we can further our joint goal of giving customers the courage and security to take on the future with confidence.”
The newest investment has boosted NEXT’s total venture capital funding to $1.1 billion.