Lemonade, Inc. 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 ten ...

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 insura ...

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

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 incr ...

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 guarant ...

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 New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...

. It has approximately 1 million customers and 70% of its customers are under the age of 35. The company is registered as a public benefit corporation and has a stated mission of ‘transforming insurance from a necessary evil into a social good." Its

business plan A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals. It also describes the nature of the business, background information on t ...

includes annually giving a portion of its underwriting profits to a

nonprofit organization A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...

chosen by each customer upon signup. Lemonade uses

artificial intelligence Artificial intelligence (AI) is intelligence—perceiving, synthesizing, and inferring information—demonstrated by machines, as opposed to intelligence displayed by animals and humans. Example tasks in which this is done include speech re ...

and

chatbot A chatbot or chatterbot is a Software agent, software application used to conduct an on-line chat conversation via text or Speech synthesis, text-to-speech, in lieu of providing direct contact with a live human agent. Designed to convincingly si ...

s to process claims. In a 2020 study of customer satisfaction,

J.D. Power J.D. Power is an American consumer research, data, and analytics firm based in Troy, Michigan. The company was founded in 1968 by James David Power III. It conducts surveys of customer satisfaction, product quality, and buyer behavior for the aut ...

ranked Lemonade as the highest among renters' insurance carriers. On December 28, 2022, Lemonade stock (LMND) hit a new low, down over 80% from its IPO.

History

Lemonade was founded by Daniel Schreiber (former president of

Powermat Technologies Powermat Technologies Ltd. is a developer of wireless power solutions for consumers, OEM and public places. The company licenses IP, sells charging spots to public venues and the software to support their maintenance, management and consumer inte ...

) and Shai Wininger (co-founder of

Fiverr Fiverr is a global online marketplace for freelance services. Fiverr’s platform connects freelancers (sellers) to people or businesses looking to hire (buyers). Listings on Fiverr are diverse and range from "get a well-designed business card" ...

) in April 2015.

Dan Ariely Dan Ariely ( he, דן אריאלי; born April 29, 1967) is an Israeli-American professor and author. He serves as a James B. Duke Professor of psychology and behavioral economics at Duke University. Ariely is the founder of the research inst ...

joined in 2017 as the Chief Behavioral Officer. In December 2015, the company secured $13 million in

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

from

Sequoia Capital Sequoia Capital is an American venture capital firm. The firm is headquartered in Menlo Park, California, and specializes in seed stage, early stage, and growth stage investments in private companies across technology sectors. , Sequoia's total a ...

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

XL Group XL or variants may stand for: Arts and entertainment * XL (band), a J-Pop band * XL Recordings, a British independent record label * XL, a character in the animated series ''Buzz Lightyear of Star Command'' Businesses and organizations Transport ...

), 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 is an American venture capital firm based in New York City. It focuses on media and internet investments. The firm was founded by Joshua Kushner who is also co-founder of Oscar Health and minority owner of the Memphis Grizzlies. ...

, 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 ( , ) is a German multinational financial services company headquartered in Munich, Germany. Its core businesses are insurance and asset management. The company is one of the world's largest insurers and financial services groups. The ...

and

Ashton Kutcher Christopher Ashton Kutcher (; born February 7, 1978) is an American actor, producer, entrepreneur, and former model. He is the recipient of various accolades, including a People's Choice Award, and nominations for two Young Artist Awards, a S ...

’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 conglomerate holding company headquartered in Minato, Tokyo which focuses on investment management. The Group primarily invests in companies operating in technology, energy, and financial sectors. It also runs the ...

, 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 co ...

, and

, increasing the total money raised by the company to $480 million. In April 2020, the company launched in

the Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...

. On July 1, 2020, the company became a

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

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 investment ...

. In December 2020, it began offering insurance in

France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...

. It also won a trademark dispute with

T-Mobile T-Mobile is the brand name used by some of the mobile communications subsidiaries of the German telecommunications company Deutsche Telekom AG in the Czech Republic (T-Mobile Czech Republic), Poland (T-Mobile Polska), the United States (T-Mobile ...

over the use of the color pink. In November 2021, the company announced that it would fully acquire Metromile, Inc. The acquisition completed on 29 July 2022, following which Lemonade laid off 20% of Metromile's staff.

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

See also

References

External links