Company:Lemonade, Inc.

From HandWiki
Short description: U.S. insurance company
Lemonade, Inc.
TypePublicly held benefit corporation
IndustryInsurance
FoundedApril 2015; 9 years ago (2015-04)
Founders
  • Daniel Schreiber
  • Shai Wininger
HeadquartersNew York City
Area served
  • United States
  • France
  • The Netherlands
  • Germany
  • United Kingdom
Key people
Products
  • Home insurance
  • Renters' insurance
  • Car insurance
  • Pet insurance
  • Life insurance
RevenueIncrease US$257 million (2022)
Decrease US$−295 million (2022)
Decrease US$−298 million (2022)
Total assetsIncrease US$1.69 billion (2022)
Total equityDecrease US$867 million (2022)
Number of employees
1,367 (Dec 2022)
SubsidiariesMetromile
RatingA (Demotech)[1]
Websitewww.lemonade.com
Footnotes / references
[2]

Lemonade, Inc., is an American insurance company. The company offers renters' insurance, homeowners' insurance, car insurance, pet insurance, and term life insurance in the United States , as well as contents and liability policies in Germany and the Netherlands and renters' insurance in France . The company is based in New York City and has approximately 1.9 million customers.[3] Lemonade does not hire human employees to process claims for customers, instead using artificial intelligence and chatbots to process claims.[4][5][6]

Since its IPO, the share price (as of November 2023) has fallen by more than 75%.

History

Lemonade was founded by Daniel Schreiber (former president of Powermat Technologies) and Shai Wininger (co-founder of Fiverr) in April 2015.[7][8] Schreiber and Wininger were tech entrepreneurs with no insurance background.[4]

In December 2015, the company secured $13 million in seed money from Sequoia Capital and Aleph.[7][9]

In August 2016, the company raised $13 million in funding from XL Innovate (part of XL Group), followed by a $34 million Series B funding round in December 2016.[10] The Series B round was led by General Catalyst with participation from Thrive Capital, Tusk Ventures, and GV (formerly Google Ventures).[11][12]

In May 2016, Lemonade became one of the few insurance companies to receive B-Corporation certification.[13]

In April 2017, the company announced additional investors: Allianz and Ashton Kutcher’s Sound Ventures. In December 2017, Softbank invested an additional $120 million in the company in a Series C round, increasing the total money raised by the company to around $180 million.[14]

In April 2019, Lemonade announced a further $300 million investment in a Series D financing led by SoftBank Group, with participation from Allianz, General Catalyst, GV, OurCrowd, and Thrive Capital, increasing the total money raised by the company to $480 million.[15][16]

In April 2020, the company launched in the Netherlands.[17]

On July 1, 2020, the company became a public company via an initial public offering.[18]

In December 2020, it began offering insurance in France .[19][20] It also won a trademark dispute with T-Mobile over the use of the color pink.[21]

In November 2021, the company announced that it would fully acquire Metromile, Inc.[22] The acquisition completed on July 29, 2022, following which Lemonade laid off 20% of Metromile's staff.[23] Metromile has experienced a noticeable premium decline ever since Lemonade completed the acquisition in July 2022. The company ended the first six months of 2023 with $49 million in written premiums, a 15% decrease compared to the same period in 2022. In terms of dollars, the most significant decrease occurred in California, which accounts for over 50% of Metromile’s business. The company saw premiums decline in every state it operates in.

See also

  • List of United States insurance companies

References

  1. ↑ "Financial Stability Ratings®: Demotech". Demotech. http://www.demotech.com/search_results_fsr.aspx?id=16023&t=2. 
  2. ↑ "Lemonade, Inc. 2022 Form 10-K Annual Report". U.S. Securities and Exchange Commission. 3 March 2023. https://www.sec.gov/ix?doc=/Archives/edgar/data/1691421/000169142123000032/lmnd-20221231.htm. 
  3. ↑ "Lemonade, Inc. Shareholder Letter Q1 2023". Lemonade, Inc.. https://s24.q4cdn.com/139015699/files/doc_financials/2023/q1/Shareholder-Letter-Q1-2023-FINAL-5-3-2023.pdf. 
  4. ↑ 4.0 4.1 "A New York startup shakes up the insurance business". The Economist. March 11, 2017. https://www.economist.com/finance-and-economics/2017/03/09/a-new-york-startup-shakes-up-the-insurance-business. 
  5. ↑ Chen, I-Chun (June 25, 2020). "Lemonade, insurer that uses bots to replace brokers, plans $286M IPO". American City Business Journals. https://www.bizjournals.com/newyork/news/2020/06/25/lemonade-insurer-that-uses-bots-plans-ipo.html. 
  6. ↑ Aziz, Afdel (March 9, 2020). "The Power Of Purpose: How Lemonade Is Disrupting Insurance With Goodness (And A New Foundation)". Forbes. https://www.forbes.com/sites/afdhelaziz/2020/03/09/the-power-of-purpose-how-lemonade-is-disrupting-insurance-with-goodness-and-a-new-foundation/?sh=4a3e97c67288. 
  7. ↑ 7.0 7.1 Shieber, Jonathan (December 8, 2015). "Sequoia Invests $13 Million In A Seed Round For Lemonade, Which Is Looking To Transform Insurance". TechCrunch. https://techcrunch.com/2015/12/08/sequoia-invests-13-million-in-a-seed-round-for-lemonade-which-is-looking-to-transform-insurance/. 
  8. ↑ Kauflin, Jeff; Stoller, Kristin (May 31, 2019). "First, Fire All The Brokers: How Lemonade, A Millennial-Loved Fintech Unicorn, Is Disrupting The Insurance Business". Forbes. https://www.forbes.com/sites/jeffkauflin/2019/05/02/lemonade-fintech-insurance-unicorn/. 
  9. ↑ "Lemonade Closes One of the Largest Seed Rounds in Sequoia's History" (Press release). Business Wire. December 8, 2015. Archived from the original on December 10, 2021. Retrieved March 15, 2021. External link in |publisher= (help)
  10. ↑ "Lemonade Announces Additional Funding by XL Innovate" (Press release). PR Newswire. August 23, 2016. Archived from the original on March 2, 2021. Retrieved March 15, 2021.
  11. ↑ "Google participates in Lemonade's $34M round". Business Insider. December 7, 2016. https://www.businessinsider.com/google-participates-in-lemonades-34m-round-2016-12. 
  12. ↑ Chernova, Yuliya (December 5, 2016). "Insurance Startup Lemonade Raises $34 Million". The Wall Street Journal. https://www.wsj.com/articles/insurance-startup-lemonade-raises-34-million-1480957751. 
  13. ↑ Lynn, Jordan (May 19, 2016). "Major disruptor Lemonade in double industry first". Insurance Business. https://www.insurancebusinessmag.com/au/news/breaking-news/major-disruptor-lemonade-in-double-industry-first-57508.aspx. 
  14. ↑ Prang, Allison (December 19, 2017). "SoftBank Leads $120 Million Funding Round for Insurance Startup Lemonade". The Wall Street Journal. https://www.wsj.com/articles/softbank-leads-120-million-funding-round-for-insurance-startup-lemonade-1513690187. 
  15. ↑ MARINOVA, POLINA (April 11, 2019). "Insurance Tech Startup Lemonade Raises $300 Million in Funding: Term Sheet for Thursday, April 11". Fortune. https://fortune.com/2019/04/11/term-sheet-thursday-april-11/. 
  16. ↑ Crook, Jordan (April 11, 2019). "Lemonade picks up $300 million Series D led by SoftBank Group". TechCrunch. https://techcrunch.com/2019/04/11/lemonade-picks-up-300-million-series-d-led-by-softbank-group/. 
  17. ↑ "Lemonade Launches in the Netherlands" (Press release). Business Wire. April 2, 2020. Archived from the original on May 10, 2020. Retrieved May 3, 2020. External link in |publisher= (help)
  18. ↑ "Lemonade Announces Pricing of Initial Public Offering" (Press release). Business Wire. July 1, 2020. Archived from the original on May 10, 2022. Retrieved December 8, 2020. External link in |publisher= (help)
  19. ↑ Dillet, Romain (December 8, 2020). "Lemonade launches its renters insurance in France". TechCrunch. https://techcrunch.com/2020/12/07/lemonade-launches-its-renters-insurance-in-france/. 
  20. ↑ Chen, I-Chun (December 9, 2020). "Lemonade launches its insurance services in France". American City Business Journals. https://www.bizjournals.com/newyork/news/2020/12/09/lemonade-launches-its-insurance-services-in-france.html. 
  21. ↑ Chen, I-Chun (December 16, 2020). "Lemonade wins in fight over the color pink against T-Mobile parent Deutsche Telekom". American City Business Journals. https://www.bizjournals.com/newyork/news/2020/12/16/lemonade-wins-in-fight-over-pink-against-t-mobile.html. 
  22. ↑ "Lemonade To Acquire Metromile". https://finance.yahoo.com/news/lemonade-acquire-metromile-211000043.html. 
  23. ↑ Mary Ann Azevedo (29 July 2022). "Lemonade closes on acquisition of insurtech Metromile, promptly lays off about 20% of its staff". TechCrunch. https://techcrunch.com/2022/07/29/lemonade-closes-on-acquisition-of-insurtech-metromile-promptly-lays-off-about-20-of-its-staff/. 

External links



Retrieved from "https://handwiki.org/wiki/index.php?title=Company:Lemonade,_Inc.&oldid=3474427"