US insurtech startup Lemonade snags $300m in SoftBank-led round

Photo: Lemonade's Facebook page

Tech-driven insurance startup Lemonade Inc has signed a $300 million funding round led by Japan’s SoftBank Group Corp, the company said on Thursday.

Other investors included insurer Allianz SE, Alphabet Inc’s venture capital arm GV, General Catalyst, OurCrowd and Thrive Capital.

The company will use the funds to expand in the United States, launch in Europe and grow its product offering beyond home and rental insurance, Lemonade Chief Executive Daniel Schreiber said in an interview.

Lemonade, which started in New York in late 2016, is part of a growing number of young companies looking to shake up the insurance sector through better use of technology. It offers insurance in 25 U.S. states and markets itself as a company that has nothing to gain by denying claims because it donates any money left over to charities chosen by its customers.

Lemonade says it has digitized the entire insurance process replacing brokers and paperwork with algorithms and providing policies in as little as 90 seconds and payment of claims in three minutes. Lemonade says it collects 100 times more data than traditional carriers which will enable it to improve underwriting and pricing.

It currently has 163 employees and has sold over half a million policies so-far, Schreiber said.

The company aims to grow its roster of products to be able to keep up with the evolving needs of its customers, many of whom are young first-time buyers of insurance, he said.

It hopes to take advantage of its lower operational costs than traditional players to build a global digital insurance company.

“When you build the company on a purely digital substrate you have the ability to expand geographically and expand into new markets at a fraction of a cost,” Schreiber said. “We don’t have to roll into town and build a skyscraper.”

The new investment round, which is targeted to close this quarter, brings the total funding raised by Lemonade to $480 million. It follows a $120 million raise in December 2017 led by Softbank with participation from existing investors.

Also read:

SoftBank leads $120m funding in NY-based fintech startup Lemonade

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.