From start-up to $2.6 billion: NEXT insurance’s jaw-dropping exit shocks tech world

Founded in 2016, NEXT Insurance, a digital insurance pioneer for small businesses, will now integrate into Munich Re’s ERGO Group, which already holds a 29% stake in the company. The deal marks a second major exit for Israeli tech in a matter of days, cementing the country’s status as a startup powerhouse.

Headquartered in Palo Alto, California, with a development hub in Kfar Saba, Israel, NEXT Insurance has revolutionized coverage for small U.S. businesses. Its tech-driven platform offers tailored, accessible products like General Liability and Workers’ Compensation insurance, boasting $548 million in 2024 revenue. Serving over 600,000 clients with a workforce of 700—200 based in Israel—the company’s growth has been meteoric since Munich Re and ERGO first partnered with it in 2017. Now, as part of ERGO, NEXT is poised to add hundreds of millions to the group’s profits mid-term, with even greater potential down the line.

The $2.6 billion deal, covering 100% of NEXT’s shares, follows investments from heavyweights like TLV Partners, Oren Zeev, Capital G, Battery Ventures, FinTLV, and Group11. CEO Guy Goldstein hailed it as a game-changer: “This is a landmark moment for NEXT, our clients, agents, and partners. We’ve transformed small business insurance in the U.S. with a seamless, efficient, personalized experience. This acquisition turbocharges our mission, letting us scale our tech and help more entrepreneurs with innovative solutions.” Backed by ERGO and Munich Re’s expertise, Goldstein vowed to keep spearheading the small business insurance revolution.

Coming on Waze’s heels, NEXT’s exit underscores Israel’s tech allure. With ERGO’s muscle, the company’s digital-first approach could redefine insurance globally, proving that Israeli innovation—born in places like Kfar Saba—continues to cash in big on the world stage.