Insurtech unicorn Next Insurance nixes 17% of workforce
Insurtech unicorn Next Insurance nixes 17% of workforce
The company is laying off 150 employees, mostly in the U.S., explaining that “we must shift focus towards profitability”
Israeli insurtech unicorn Next Insurance is laying off 150 employees, which make up some 17% of the company’s workforce. Most of those being laid off are based in the U.S., but it is believed that around 40 of the employees leaving the company are headquartered in Israel.
"It was a very difficult decision, but we are reducing the workforce to adapt to the worsening macroeconomic environment,” Next Insurance wrote in a statement. “In the last six years since we were founded, we have invested heavily in building our product base, increasing our customer acquisition channels and in 2021 we tripled the business. The company is on track to reach annual sales of well over $800 million in 2022. However, in reference to the company's long-term vision, we must shift focus towards profitability. We will be reducing our workforce by 17% with most of the positions impacted being in the U.S."
Next raised $250 million at a $4 billion valuation in March 2021, bringing the company's total funding raised to more than $880 million. Its latest round was led by FinTLV Ventures and Battery Ventures with participation from CapitalG, Group 11, Zeev Ventures, Founders Circle, and G Squared.
The company operates in the digital insurance market for small and medium-sized businesses in the U.S., offering policies designed for a variety of businesses. It currently has around 200,000 customers.
Next Insurance was founded in 2016 by Israeli entrepreneurs Nissim Tapiro, Guy Goldstein, and Alon Huri. Goldstein was among the co-founders of fintech startup Check Inc., which was acquired by software giant Intuit Inc. in 2014. Huri and Tapiro were both top executives at the company.
