‘Next’ in Line: Unpacking the Insurtech Giant’s Series G Markdown

Next Insurance is an insurtech company that offers tailored insurance solutions for small businesses and entrepreneurs. Founded in 2016, it seeks to simplify the insurance buying process by providing easy online access to customized policies. By leveraging technology, Next Insurance not only provides more efficient service but also often delivers more competitive rates than traditional insurers. It is also a component of the Prime Unicorn Index, the standard bearer for private markets benchmarking. Reflecting the broader private market, the Index is down 6.94% year-to-date. 

Next has raised a total of $864.2 million over eight rounds. Its most recent round was a $250 million Series F round that included investors such as G Squared, Founders Circle, Group 11, Capital G Battery Ventures, and FinTLV Ventures. The round was priced at $24.75 ($4.95 following a 1-to-5 split) per preferred share, which valued the company at $4.1 billion on a post-money valuation basis.

On October 5, 2023, Next authorized a Series G round at $2.57, a 48% discount from its previous PPPS of $4.95. This gives the company a pre-money valuation of $2.2 billion. According to The Insurer, Next is close to closing this round, which could see at least $100 million raised. 

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