Munich Re buys Israeli insurtech co Next at $2.6b valuation

In 2022, because the expertise market cooled and the insurtech sector went into decline, Israeli startup Subsequent Insurance coverage was pressured to put off workers. 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 offered to certainly one of its early traders, German insurance coverage company Munich Re at a barely larger valuation, $2.6 billion. The corporate has raised a complete of $1.17 billion, based on the PitchBook database.

Munich Re is shopping for the 71% of Subsequent Insurance coverage that it doesn’t already personal, via 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 via 1,300 several types of insurance coverage. Like one other Israeli insurtech firm, Lemonade, which is energetic within the devour market, Subsequent Insurance coverage is predicated on synthetic intelligence and machine studying to hold out good underwriting and to approve inside minutes a coverage provide that matches the standards of small enterprise homeowners. Based on LinkedIn, the corporate employs 730 folks, 200 of them at its Kfar Sava headquarters.

Among the many traders within the firm, based on PitchBook, are Oren Zeev, via Zeev Ventures, Dovi Frances’s Group 11, TLV Companions, and extra currently 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 succeed in reinsurers, and thereby enhance its profitability.

Printed by Globes, Israel enterprise information – en.globes.co.il – on March 20, 2025.

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