"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.
Thimble Announced Layoffs, Too
Commercial lines insurtech Thimble Insurance Services has also let go around 20 employees, or about 33 percent of its workforce, as it becomes the latest insurtech to cut costs in a tightening funding environment amid macroeconomic turbulence and sector-specific concerns.
In June, insurtech Policygenius let go 25% of its staff in a bid to reduce costs.