Axios – Pro: Newfront Insurance Raises at a $2.2 Billion Valuation
Newfront, a San Francisco-based insurance brokerage startup, raised $200 million at a $2.2 billion valuation. Goldman Sachs Asset Management's Growth Equity business and B Capital led the round with participation from Founders Fund and Meritech Capital.
Why it matters: Carriers have been at the center of the insurtech sector's recent public market implosion. But Newfront operates as a brokerage that connects multiple carriers to consumers.Flashback: Just a few weeks ago, another insurtech distributor, Policygenius, raised $125 million at a higher valuation.
Details: Newfront was last valued at $1.35 billion in July after acquiring a more traditional competitor, ABD.The company was profitable last year on a net income basis, says CEO Spike Lipkin. So far this year, the company is profitable on an EBITDA basis.
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