Lemonade,
the insurance company powered by artificial intelligence and behavioral
economics, today announced the signing of a $300 million Series D
funding round led by SoftBank Group (“SoftBank”), with participation
from Allianz, General Catalyst, GV (formerly known as Google Ventures),
OurCrowd, and Thrive Capital. Lemonade plans to use the funds to
accelerate its US and European expansion in 2019, and explore new
product lines.
Founded by tech veterans Daniel
Schreiber and Shai
Wininger, Lemonade is licensed as a full-stack property and casualty
insurance carrier. The company began offering homeowners and renters
insurance in New York in late 2016, and is now available for most of the
US population. Lemonade is currently the #1 rated provider of renters
insurance in the country.
In addition to digitizing
the entire insurance process, Lemonade reduces costs and bureaucracy
through giving. In a reversal
of the traditional insurance model, Lemonade takes a fixed
percentage as a flat fee, eliminating the conflict between paying claims
and making a profit, and donates a portion of unclaimed premium dollars
to nonprofits during its annual ‘Giveback.’
“In less than three years, Lemonade has expanded across the US, given
back to dozens of charities chosen by our community, and fundamentally
changed how a new generation of consumers interacts with insurance,”
said Daniel Schreiber, CEO and cofounder, Lemonade. “Looking forward, we
aspire to create the 21st century incarnation of the successful
insurance company: a loved global brand that can endure for generations;
an organization built on a digital substrate, enabling ever faster and
more efficient operations, and ever more delighted consumers.”
Built from scratch on a digital substrate, Lemonade collects 100X more
data than traditional carriers, enabling the company to generate highly
predictive data with the promise of ever improving underwriting and
pricing.
“We’ve watched Lemonade transform insurance using big data and AI,
reaching half a million homes in a little over two years – a shockingly
rapid pace,” said Shu Nyatta, a senior investment professional within
the SoftBank Group and a Lemonade Board Member. “And we’re confident
that the best is yet to come. The value Lemonade provides, together with
the values baked into its model, are fast making it one of the most
intriguing, differentiated and compelling brands.”
The transaction – which is subject to customary closing conditions
including regulatory approvals – is targeted to close in Q2 2019.
About Lemonade
Lemonade Insurance Company is a licensed insurance carrier, offering
homeowners and renters insurance powered by artificial intelligence and behavioral
economics. By replacing brokers and bureaucracy with bots and
machine learning, Lemonade aims for zero paperwork and instant
everything. As a Certified B-Corp, where underwriting profits go to
nonprofits, Lemonade is remaking insurance as a social good, rather than
a necessary evil. Lemonade is currently available for the majority of
the US population and will launch in Europe soon as part of its global
expansion.
Stay in touch at http://www.lemonade.com,
@lemonade_inc
or http://www.facebook.com/lemonade.
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