Lemonade, the New York-based insurance company, today announced it has raised $ 300 million in Series D. The funding round was led by SoftBank and included Allianz, General Catalyst, GV, OurCrowd and Thrive Capital.
The New York start-up founded in 2015 by Daniel Schreiber and Shai Wininger, Lemonade, aims to facilitate the insurance purchasing experience for tenants and owners through its application. The company, which offers its own insurance policies, uses artificial intelligence to perform the process of getting a quote, replacing brokers with algorithms. She prides herself on being able to deliver contracts in 90 seconds, and close a payment in 3 minutes.
Lemonade, soon in Europe?
Lemonade also differs from traditional insurers by also having a solidarity approach: premiums collected for policyholders but not claimed are donated to associations chosen by customers.
” We take a fixed commission on your monthly payments, pay for reinsurance (and some unavoidable fees), and use the rest to pay claims. Essentially, we treat bonuses as if they are still your money and return unclaimed leftovers to our annual donation program ”, explains the company.
Lemonade operates in 25 US states and today has 163 employees, who have sold over half a million contracts. In 2017, the company that aims to revolutionize the insurance sector through big data and AI had already managed to raise $ 120 million in Series C, notably from SoftBank. In total, she raised $ 480 million. To set itself apart from traditional insurers, the start-up is counting on its ability to collect and interpret data more quickly and on lower operational costs conferred on it by its 100% digital DNA. Its insurance offering for renters starts at $ 5 per month and $ 25 for homeowners. Last year, it posted sales of $ 57 million.
Through this fundraising, Lemonade wishes to expand beyond the United States, starting by launching its product in Europe. The company also plans to expand its product offering beyond home insurance and rentals, and aim for a younger target.
Lemonade: the key data
Founders: Daniel Schreiber and Shai Wininger
The head office : New York
Funding: $ 480 million in total