Google sister firm the investment fund CapitalG (both are owned by Alphabet) has led a $250 million Series D round of funding in the Israeli small business insurer Next Insurance Inc., giving the company a $2 billion valuation. The news comes while Federal prosecutors revealed plans for their antitrust suit against Google.
If Google thinks that a new company is worth $2 billion then it must be true. That is what most people would say. FinTLV, and existing investors Munich RE Group also took part in the Series D funding. Next Insurance offers specially tailored insurance policies that meet the needs of all manner of business.
Guy Goldstein, one of the people who co-founded Next Insurance Inc. in 2016, boasted in a blog post that they are, “constantly thinking of ways we can better serve our small business customers, improve our products, solve new pain points and deliver a phenomenal customer experience.”
“Next Insurance is modernizing insurance for small business owners—making it fast and simple to get broad, customized coverage,” CapitalG Partner Sumi Das said in a statement. “We believe that there is an opportunity to use technology to transform the small business insurance experience in the U.S. and build a national insurance leader.”
Small businesses and minority-owned businesses are some of the most vulnerable in our economy. See what’s at stake if they don’t make it through the coronavirus pandemic with these interactive maps.https://t.co/9kaneyzImx
— Next Insurance (@nextInsurance1) September 18, 2020
But Google is in some hot water these days and its parent company Alphabet could soon be in need of the cash that it just invested. Or maybe that is why it feels a need to continue to diversify. This is all if American authorities get their way.
The New York Times reports that the Justice Department’s antitrust case against Google will emphasize on the company’s power over internet searches. In a meeting with State attorneys general today Federal Prosecutors are expected to explain how their case focuses on the harm the company’s policies do to rivals and consumers.
If a judge rules that Google is in fact a monopoly then the repercussions will be devastating for the company. Countless businesses around the world and rival companies will be able to launch whopping law suits against it. If it loses an anti-trust case Google could be looking at huge fines and a possible breakup of the company.
Google also has the only rival to Apple’s iPad operating system, Android. All devices that use Android are by default attached to Google. Even though it is free, Google uses Android to gather market research data and to keep track of users’ activities for the purpose of targeted advertising.
Maybe Google should be buying some business lawsuit insurance these days. Come to think of it, maybe that’s why it’s investing in Next Insurance.