Technology-driven insurance brokerage Newfront has raised more than $100 million in funding, most recently valuing the company at $500 million. The lead investors were Founders Fund and Meritech Capital.
“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,” said Spike Lipkin, co-founder and CEO of Newfront. “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.”
“Newfront is one of those incredibly rare businesses that has the opportunity and the team to rebuild an industry that is crucial to the economy that today provides a subpar client experience,” said Kevin Hartz, an early investor in PayPal and founder of businesses like Xoom and Eventbrite. “The future is bright for Newfront.”
Newfront has grown to be one of the nation’s top 100 brokerages since its founding three years ago. Its book more than tripled it 2019, and will more than double this year despite the COVID-19 pandemic, the company said.
Newfront will use the funds from the capital raising to invest in its platform, resources for clients, and growth strategy.