Newfront has secured an investment of $200m in its latest funding round led by the Growth Equity business within Goldman Sachs Asset Management and B Capital.
The insurance brokerage platform’s existing investors such as Founders Fund and Meritech Capital also joined the latest round.
The deal gave the company a valuation of approximately $2.2bn.
Newfront intends to use the proceeds to add more people to its technology teams and offer clients more data-driven insights.
It will invest in dedicated client resources across a wide array industry as well boost presence across the US.
Newfront co-founder and CEO Spike Lipkin said: “The nature of risk has changed drastically over the past century but the insurance industry has not modernised to meet these new challenges.
“This investment furthers Newfront’s commitment to building the modern platform for clients, insurance professionals, and trading partners.”
The funding round follows the merger of Newfront and ABD in August 2021. Following the merger, the company has rolled out a new client dashboard, augmented benchmarking capabilities, and hired over 200 people.
Newfront executive chairman Kurt de Grosz 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.”
The round also saw participation from Y Combinator, Index Ventures, Bloomberg Beta, XYZ, Susa Ventures, Pruven, Propel, Vetamer, Altai, Tony Xu CEO of Doordash, and others.
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.”
Newfront, which employs over 800 employees, has offices across California, Washington, Illinois, and New York.
Matt Levinson, Partner at B Capital, said: “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.”