US-based insurance brokerage Newfront has raised over $100m in funding to fund its efforts aimed at modernising risk management for middle market businesses.

The funding round, which was led by Founders Fund and Meritech Capital, boosted the company’s valuation to more than $500m.

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Newfront will use the new capital to bolster its platform, expand its resources for clients, and scale up its growth strategy for the future.

Newfront CEO Spike Lipkin said: “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.

“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.”

Founded in 2017, Newfront leverage a brokerage model that combines software and experts to offer transparent and data-driven approach to risk management.

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The company noted that its book more than tripled in 2019. It is expected to more than double this year, despite the current Covid-19 pandemic.

Lipkin attributed the ‘rapid growth’ to his team, which consists of people who previously worked with insurance industry majors including Alliant, HUB, and Lockton and tech majors like Uber, LinkedIn, and Intuit.

HUB International’s former chief sales officer Garth Hamilton, who is now part of Newfront, noted: “Newfront assembled the right team with the right vision and experience to bring about the change our industry so desperately needs.”