Enhanced Investments - Financial Portal

Newfront announces $200 million investment from Goldman Sachs Asset Management, B Capital, and other investors at a $2.2 billion valuation to modernize insurance

Published: 2022-04-12 13:00:00 ET

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.

About NewfrontNewfront 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 EquityBringing 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 GroupB 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

Press contact:Jane PaolucciSenior Vice President, MarketingNewfrontpress@newfront.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/newfront-announces-200-million-investment-from-goldman-sachs-asset-management-b-capital-and-other-investors-at-a-2-2-billion-valuation-to-modernize-insurance-301523827.html

SOURCE Newfront Insurance

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.