- Stack Capital Group (STCK.WT) has acquired US$8 million of preferred shares of Newfront Insurance
- Stack Capital’s investment was completed alongside other Series D investors, including Goldman Sachs, B Capital, Founders Fund, and Y Combinator, amongst many others
- Newfront is a leading provider of insurance, retirement solutions, and employee benefits
- Stack Capital is an investment holding company operating in Canada and the United States
- Shares of Stack Capital Group Inc. (STCK.WT) opened trading at $0.34
Stack Capital Group (STCK.WT) has acquired US$8 million of shares of Newfront Insurance, a leading provider of insurance, retirement solutions, and employee benefits.
Stack Capital’s investment was completed alongside other Series D investors, including Goldman Sachs, B Capital, Founders Fund, and Y Combinator, amongst many others.
Newfront Insurance was recently recognized as the winner of the 6th Annual Fintech Breakthrough Awards program for 2022, and a member of the Forbes Fintech 50 list for 2021.
“By focusing on meeting the needs of clients and insurance professionals, Newfront has built an innovative platform that has revolutionized the industry,” stated Jeff Parks, CEO of Stack Capital.
“Given its already sizable and established client base, strong growth rate, and profitability, we believe that Newfront is poised to capitalize on a significant market opportunity and we’re extremely happy to make it the latest addition to the Stack Capital portfolio,” he added.
Newfront has focused its efforts on replacing the antiquated paperwork and legacy systems of record in the insurance industry with an integrated system of action built on continuously improving the software.
By choosing to partner with insurance professionals and, by extension, their valuable client relationships which account for an estimated 98 per cent of the market, Newfront has successfully created a platform that marries the legacy insurance brokerage business with new technology to help drive efficiencies.
Over time, the Newfront business model offers multiple drivers for growth as new insurance professionals become part of its platform, existing professionals increase sales productivity, and profitability improves with scale.
Stack Capital is an investment holding company operating in Canada and the United States.
Shares of Stack Capital Group Inc. (STCK.WT) opened trading at $0.34.