Lemonade, Inc.

Last updated

Lemonade, Inc.
Company type Publicly held benefit corporation
Industry Insurance
FoundedApril 2015;9 years ago (2015-04)
Founders
  • Daniel Schreiber
  • Shai Wininger
Headquarters New York City
Area served
  • United States
  • France
  • The Netherlands
  • Germany
  • United Kingdom
Key people
Products
RevenueIncrease2.svg US$430 million (2023)
Increase Negative.svg US$−230 million (2023)
Increase Negative.svg US$−237 million (2023)
Total assets Decrease2.svg US$1.63 billion (2023)
Total equity Decrease2.svg US$709 million (2023)
Number of employees
1,258 (2023)
Subsidiaries Metromile
RatingA (Demotech) [1]
Website 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]

Contents

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.

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References

  1. ↑ "Financial Stability Ratings®: Demotech". Demotech. Archived from the original on May 10, 2022. Retrieved August 9, 2017.
  2. ↑ "Lemonade, Inc. 2023 Form 10-K Annual Report". U.S. Securities and Exchange Commission. February 28, 2024.
  3. ↑ "Lemonade, Inc. Shareholder Letter Q1 2023" (PDF). Lemonade, Inc.
  4. 1 2 "A New York startup shakes up the insurance business" . The Economist . March 11, 2017. Archived from the original on January 19, 2021. Retrieved March 15, 2021.
  5. ↑ Chen, I-Chun (June 25, 2020). "Lemonade, insurer that uses bots to replace brokers, plans $286M IPO". American City Business Journals . Archived from the original on May 10, 2022. Retrieved March 15, 2021.
  6. ↑ Aziz, Afdel (March 9, 2020). "The Power Of Purpose: How Lemonade Is Disrupting Insurance With Goodness (And A New Foundation)" . Forbes . Archived from the original on May 10, 2022. Retrieved March 15, 2021.
  7. 1 2 Shieber, Jonathan (December 8, 2015). "Sequoia Invests $13 Million In A Seed Round For Lemonade, Which Is Looking To Transform Insurance". TechCrunch . Archived from the original on July 7, 2017. Retrieved August 9, 2017.
  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 . Archived from the original on February 10, 2021. Retrieved March 15, 2021.
  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.
  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. Archived from the original on January 31, 2018. Retrieved March 15, 2021.
  12. ↑ Chernova, Yuliya (December 5, 2016). "Insurance Startup Lemonade Raises $34 Million" . The Wall Street Journal . Archived from the original on December 30, 2017. Retrieved March 15, 2021.
  13. ↑ Lynn, Jordan (May 19, 2016). "Major disruptor Lemonade in double industry first". Insurance Business. Archived from the original on September 20, 2020. Retrieved March 15, 2021.
  14. ↑ Prang, Allison (December 19, 2017). "SoftBank Leads $120 Million Funding Round for Insurance Startup Lemonade" . The Wall Street Journal . Archived from the original on June 18, 2021. Retrieved March 15, 2021.
  15. ↑ MARINOVA, POLINA (April 11, 2019). "Insurance Tech Startup Lemonade Raises $300 Million in Funding: Term Sheet for Thursday, April 11" . Fortune . Archived from the original on May 17, 2021. Retrieved March 15, 2021.
  16. ↑ Crook, Jordan (April 11, 2019). "Lemonade picks up $300 million Series D led by SoftBank Group". TechCrunch . Archived from the original on April 14, 2021. Retrieved March 15, 2021.
  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.
  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.
  19. ↑ Dillet, Romain (December 8, 2020). "Lemonade launches its renters insurance in France". TechCrunch . Archived from the original on December 16, 2020. Retrieved December 16, 2020.
  20. ↑ Chen, I-Chun (December 9, 2020). "Lemonade launches its insurance services in France". American City Business Journals . Archived from the original on December 9, 2020. Retrieved March 15, 2021.
  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 . Archived from the original on December 19, 2020. Retrieved March 15, 2021.
  22. ↑ "Lemonade To Acquire Metromile". Yahoo. Archived from the original on November 9, 2021. Retrieved November 9, 2021.
  23. ↑ Mary Ann Azevedo (July 29, 2022). "Lemonade closes on acquisition of insurtech Metromile, promptly lays off about 20% of its staff". TechCrunch .
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