In 2022, because the know-how market cooled and the insurtech sector went into decline, Israeli startup Subsequent Insurance coverage was compelled to put off staff. On the finish of 2023 it raised a big quantity, $365 million, however at a decrease valuation than in its earlier spherical, falling from $4 billion to $2.5 billion. Now, the corporate is being bought to certainly one of its early traders, German insurance coverage company Munich Re at a barely increased valuation, $2.6 billion. The corporate has raised a complete of $1.17 billion, in line with the PitchBook database.
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Munich Re is shopping for the 71% of Subsequent Insurance coverage that it doesn’t already personal, by way of Ergo Group, its major insurance coverage unit. The acquisition is a money deal.
Subsequent Insurance coverage develops and manages a digital platform for insuring small companies within the US. It was based 9 years in the past by Man Goldstein, Alon Huri, and Nissim Tapiro. On the time of its final fund elevating spherical in 2023 it reported that it had surpassed 500,000 energetic prospects within the US by way of 1,300 various kinds of insurance coverage. Like one other Israeli insurtech firm, Lemonade, which is energetic within the devour market, Subsequent Insurance coverage relies on synthetic intelligence and machine studying to hold out sensible underwriting and to approve inside minutes a coverage provide that matches the factors of small enterprise house owners. In keeping with LinkedIn, the corporate employs 730 folks, 200 of them at its Kfar Sava headquarters.
Among the many traders within the firm, in line with PitchBook, are Oren Zeev, by way of Zeev Ventures, Dovi Frances’s Group 11, TLV Companions, and extra recently Redpoint Ventures, Nationwide Ventures, CapitalG, and several other monetary establishments, amongst them Financial institution Hapoalim, Migdal, and Psagot.
The final spherical additionally introduced in two strategic traders: US insurance coverage firm Allstate and Allianz X, the digital funding arm of German insurance coverage firm Allianz. Allianz X helped Subsequent Insurance coverage to achieve reinsurers, and thereby enhance its profitability.
Printed by Globes, Israel enterprise information – en.globes.co.il – on March 20, 2025.
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