Newfront Announces $200 Million Investment

Newfront, the modern insurance brokerage platform,, has today announced its launch. $200 Million investment at a $2.2bn valuation led by the Growth Equity business within Goldman Sachs Asset Managemen participation from existing investors, including t and B Capital 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,” Newfront CEO, Co-Founder Spike Lipkin. “This investment furthers Newfront’s commitment to building the modern platform for clients, insurance professionals, and trading partners.”

Newfront will expand its technology team and be focusing on data-driven insights. Newfront plans to expand its US operations and invest in specialist client resources and experts from a variety of industries.

The financing validates the merger of ABD and Newfront that took place in August 2021. The company has seen record-breaking growth in the past seven months, while also achieving profitability.

Kurt de GroszExecutive Chairman of Newfront: “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 HetheringtonPresident 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 WintrobNewfront Co-Founder, CTO and co-founder of Newfront: “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 PateVice President, Goldman Sachs Asset Management: “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 LevinsonB Capital Partners: “At B Capital, we seek to back generational companies with broad platform potential. Newfront, the only modern insurance broker and benefits agent, has an exceptional opportunity to achieve this. 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.”

Other investors include Y Combinator Index Ventures and Bloomberg Beta, XYZ Ventures, Susa Ventures. Pruven, Propel. Vetamer. Altai. Tony Xu CEO at Doordash.

Get latest news from African Startup ecosystem

Latest stories

You might also like...