SoftBank-backed Lemonade takes 30% valuation cut, seeks to raise $286m via IPO

Photo: Lemonade's Facebook page

SoftBank Group Corp-backed insurance startup Lemonade Inc aims to raise up to $286 million in its U.S. initial public offering (IPO), at a $1.43 billion market capitalization, or 30% less than what the company was valued at last year.

The company intends to sell 11 million shares in the IPO and has set a target range of $23-$26 per share, according to a regulatory filing here.

Lemonade was valued at $2.1 billion last year after it raised $300 million in a funding round led by Japan’s SoftBank that also included insurer Allianz SE, Alphabet Inc’s venture capital arm GV and General Catalyst.

The listing comes amid a strong appetite for new stock offerings, especially those with an online-focused business against the backdrop of the pandemic.

Online used car seller Vroom Inc earlier this month raised $467.5 million in its IPO and its shares more than doubled in value on debut.

Lemonade is part of a growing number of young companies looking to shake up the insurance sector through a better use of technology.

The company, started in late-2016, says it has digitized the entire insurance process, replacing brokers and paperwork with algorithms and providing policies in as little as 90 seconds and claim payments in three minutes.

Lemonade intends to list its shares on the New York Stock Exchange under the symbol “LMND”.

Reuters 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.