Next Insurance is in talks to raise new capital in a round that values the insurance technology startup at about $2.25 billion, according to people familiar with the matter.

Alphabet Inc.’s CapitalG is in talks to lead the roughly $250 million funding round for the Palo Alto, California-based company, the people said, asking not to be identified because the matter is private.

The round would about double Next Insurance’s valuation from its last fundraising. It last raised $250 million in October from German reinsurer Munich Re, which gave it a valuation of more than $1 billion.

The round hasn’t been finalized and its terms could still change.

Representatives for Next Insurance and CapitalG didn’t respond to requests for comment.

Next Insurance, which caters to small businesses, is also backed by investors including Redpoint Ventures, Nationwide Mutual Insurance Co. and American Express Ventures.

Online insurance company Hippo Enterprises Inc. closed a funding round in July valuing it at $1.5 billion. Shares of Lemonade Inc., a New York-based, venture-backed insurer that went public in July, have gained 88% since then.

Topics InsurTech