Investment is further validation of the platform and will accelerate development of pioneering technology, investment in resources, and geographic expansion
SAN FRANCISCO, April 12, 2022 /PRNewswire/ — Newfront, the modern insurance brokerage platform, today announced a $200 Million investment at a $2.2bn valuation led by the Growth Equity business within Goldman Sachs Asset Management and B Capital with participation from existing investors including Founders Fund and Meritech Capital.
“The nature of risk has changed drastically over the past century but the insurance industry has not modernized to meet these new challenges,” said Newfront Co-Founder and CEO Spike Lipkin. “This investment furthers Newfront’s commitment to building the modern platform for clients, insurance professionals, and trading partners.”
Newfront plans to grow its technology teams and focus in particular on harnessing data-driven insights for clients. The company also plans to invest in specialized client resources and experts across a wide variety of industries and expand across the US.
The financing serves as further validation of the merger of Newfront and ABD, which occurred in August 2021. In seven months the company has launched a new client dashboard, refined benchmarking capabilities, welcomed more than 200 new colleagues, and experienced record-breaking growth while achieving profitability.
Kurt de Grosz, Executive Chairman of Newfront said: “Newfront is the model our industry desperately needs– one that puts clients and colleagues at the center and where shareholder returns are connected to delivering client value.”
Brian Hetherington, President of Newfront added: “We are finding that talented brokers and insurance professionals are voting with their feet and leaving 100 year old platforms to join us in pursuit of a better client and colleague experience. There has never been a better time to join Newfront.”
Gordon Wintrob, Co-Founder and CTO of Newfront remarked: “Our technology teams have spent five years converting pen and paper and systems of record into a system of action that improves the experience for clients, colleagues, and trading partners. Structured data will transform our industry.”
Paul Pate, Vice President within Goldman Sachs Asset Management said: “We see modern, full-stack platforms transforming large parts of financial services, and we believe Newfront’s marriage of technology, people, and domain expertise represents the future of the insurance industry. We are proud to support Spike, Kurt, Gordon, Brian, and the entire Newfront team as they continue to scale the platform and move the industry forward.”
Matt Levinson, Partner at B Capital said: “At B Capital, we seek to back generational companies with broad platform potential. Newfront has a unique opportunity to achieve this as the sole modern insurance and benefits broker. Fundamentally, Spike and the team understand that enterprises will always want to work with a human broker, as their needs are nuanced and policies don’t fit a template. What the industry really needs is the ‘bionic broker’ – the most talented brokers in the country powered by the best technology stack. As Newfront continues to build an important distribution channel, we believe they will have opportunities to innovate up and down the insurance stack – across product, capital, claims, and risk management.”
Additional investors in the round include Y Combinator, Index Ventures, Bloomberg Beta, XYZ, Susa Ventures, Pruven, Propel, Vetamer, Altai, Tony Xu CEO of Doordash, and others.
Newfront is transforming the delivery of risk management, employee experience, insurance, and retirement solutions by building the modern insurance platform. Transparent data delivered real-time translates into a lower total cost of risk and greater insights. Newfront makes insurance work for you.
Headquartered in San Francisco, Newfront has offices throughout California, Washington, Illinois, and New York and is home to over 800 employees who serve clients across the United States and globally. To learn more, visit: newfront.com
About Goldman Sachs Asset Management Growth Equity
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of December 31, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Since 2003 the Growth Equity business within Goldman Sachs Asset Management comprising more than 75 individuals has invested over $13 billion in companies led by visionary founders and CEOs. We focus exclusively on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare. Follow us on LinkedIn.
About B Capital Group
B Capital Group is a multi-stage global investment firm founded in 2015. Investing in companies transforming large traditional industries across borders and geographies, B Capital leverages an international team of seasoned experts, as well as its strategic partnership with BCG. The firm helps founders navigate business challenges, raise capital, and attract talented leadership at every stage of the startup lifecycle. B Capital invests in enterprise software, healthcare, financial services, consumer enablement, and industrial and transportation companies. The B Capital portfolio includes global, industry-leading companies like Atomwise, Carro, Dailyhunt, Datarobot, Evidation Health, Icertis, Innovaccer, Ninja Van, Tuhu, and Yalo. For more information, visit bcapgroup.com
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SOURCE Newfront Insurance