Lemonade, Inc. is an American insurance company. The company offers

renters' insurance Renters' insurance, often called tenants' insurance, is an insurance policy that provides some of the benefits of homeowners' insurance, but does not include coverage for the dwelling, or structure, with the exception of small alterations that a t ...

homeowners' insurance Home insurance, also commonly called homeowner's insurance (often abbreviated in the US real estate industry as HOI), is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insur ...

car insurance Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for automobile, cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bo ...

pet insurance Pet insurance is a form of insurance that pays, partly or in total, for veterinary treatment of the insured person's ill or injured pet. Some policies will pay out when the pet dies, or if the pet is lost or stolen. As veterinary medicine is inc ...

, and

term life insurance Term life insurance or term assurance is life insurance that provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires, coverage at the previous rate of premiums is no longer guarante ...

in the United States, as well as

contents Content or contents may refer to: Media * Content (media), information or experience provided to audience or end-users by publishers or media producers ** Content industry, an umbrella term that encompasses companies owning and providing mass m ...

and liability policies in Germany and the

Netherlands , Terminology of the Low Countries, informally Holland, is a country in Northwestern Europe, with Caribbean Netherlands, overseas territories in the Caribbean. It is the largest of the four constituent countries of the Kingdom of the Nether ...

and renters' insurance in France. The company is based in New York City and has approximately 1.9 million customers. Lemonade does not hire human employees to process claims for customers, instead using

artificial intelligence Artificial intelligence (AI) is the capability of computer, computational systems to perform tasks typically associated with human intelligence, such as learning, reasoning, problem-solving, perception, and decision-making. It is a field of re ...

and

chatbot A chatbot (originally chatterbot) is a software application or web interface designed to have textual or spoken conversations. Modern chatbots are typically online and use generative artificial intelligence systems that are capable of main ...

s to process claims.

History

2015–2019

Lemonade was founded by Daniel Schreiber (former president of

Powermat Technologies Powermat Technologies Ltd. is a developer of Wireless power transmission, wireless power techniques. The company licenses intellectual property (IP), selling charging spots to public venues along with the software to support their maintenance, ma ...

) and Shai Wininger (co-founder of

Fiverr Fiverr is an Israeli multinational online marketplace for freelance services. Fiverr's connects freelancers to people or businesses looking for services. Fiverr takes its name from the $5 asking price attached to all tasks when the company was ...

) in April 2015. Schreiber and Wininger were tech entrepreneurs with no insurance background. In December 2015, the company secured $13 million in

seed money Seed money, also known as seed funding or seed capital, is a form of securities offering in which an investor puts capital in a startup company in exchange for an equity stake or convertible note stake in the company. The term ''seed'' suggest ...

from

Sequoia Capital Sequoia Capital Operations, LLC is an American venture capital firm headquartered in Menlo Park, California, specializing in seed stage, early stage, and growth stage investments in private companies across technology sectors. the firm had appro ...

and Aleph. In August 2016, the company raised $13 million in funding from XL Innovate (part of

XL Group Axa XL is an American subsidiary of global insurance and reinsurance company Axa. It is headquartered in Stamford, Connecticut, domiciled in Hamilton, Bermuda, and has more than 100 offices on 6 continents. In 2016, the company wrote $13.890 bi ...

), followed by a $34 million

Series B A venture round is a type of funding round used for venture capital financing, by which startup companies obtain investment, generally from venture capitalists and other institutional investors. The availability of venture funding is among the ...

funding round in December 2016. The Series B round was led by General Catalyst with participation from

Thrive Capital Thrive Capital Management, LLC, commonly Thrive Capital, is an American venture capital firm based in New York City. It focuses on software and internet investments. The firm was founded by Joshua Kushner who is also co-founder of Oscar Health ...

, Tusk Ventures, and GV (formerly Google Ventures). In May 2016, Lemonade became one of the few insurance companies to receive B-Corporation certification. In April 2017, the company announced additional investors:

Allianz Allianz SE ( , ) is a German Multinational corporation, multinational financial services company headquartered in Munich, Germany. Its core businesses are insurance and asset management. Allianz is the world's largest List of largest insurance ...

and

Ashton Kutcher Christopher Ashton Kutcher (; born February 7, 1978) is an American actor, producer and entrepreneur. His accolades include a People's Choice Award and fifteen Teen Choice Awards, in addition to a nomination for a Screen Actors Guild Award. K ...

’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. In April 2019, Lemonade announced a further $300 million investment in a Series D financing led by

SoftBank Group is a Japanese multinational investment holding company headquartered in Minato, Tokyo, that focuses on investment management. The group primarily invests in companies operating in technology that offer goods and services to customers in a m ...

, with participation from Allianz, General Catalyst, GV,

OurCrowd OurCrowd is an online global venture investing platform that empowers institutions and individual accredited investors to invest and engage in emerging technology companies at an early stage while still privately held. Based in Jerusalem, the com ...

, and

, increasing the total money raised by the company to $480 million.

2020–present

In April 2020, the company launched in

the Netherlands , Terminology of the Low Countries, informally Holland, is a country in Northwestern Europe, with Caribbean Netherlands, overseas territories in the Caribbean. It is the largest of the four constituent countries of the Kingdom of the Nether ...

. On July 1, 2020, the company became a

public company A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...

via an

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...

. The company sold 11,000,000 shares of its common stock, each share priced at $29.00, under the ticker symbol "LMND" on the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...

. In December 2020, it began offering insurance in France. It also won a trademark dispute with

T-Mobile T-Mobile is the brand of telecommunications by Deutsche Telekom Deutsche Telekom AG (, ; often just Telekom, DTAG or DT; stylised as ·T·) is a partially state-owned German telecommunications company headquartered in Bonn and the largest telec ...

over the use of the color pink. In May 2021, short-seller Carson Block wrote a letter to Lemonade co-founder and chief executive Daniel Schreiber sharing details of an “accidentally discovered” security flaw that exposed Lemonade customers’ personally identifiable account data. Block wrote that the bug was “unforgivably negligent,” and that his firm was shorting the company’s stock “because it is clear Lemonade does not give a fuck about securing its customers’ sensitive personal information." In November 2021, the company announced that it would fully acquire Metromile, Inc. The acquisition completed on July 29, 2022, following which Lemonade laid off 20% of Metromile's staff. 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.

References

External links

* {{authority control Financial services companies established in 2015 Internet properties established in 2015 Insurance companies based in New York City American companies established in 2015 Online insurance companies Property insurance Public benefit corporations based in the United States 2015 establishments in New York City 2020 initial public offerings Companies listed on the New York Stock Exchange B Lab-certified corporations

History

2015–2019

2020–present

See also

References

External links