Lemonade, the insurance company built around artificial intelligence and behavioral economics, announced the signing of a $300 million Series D funding round led by SoftBank Group with participation from Allianz, General Catalyst, GV (formerly known as Google Ventures), OurCrowd, and Thrive Capital.
Lemonade said it plans to use the funds to accelerate its U.S. and European expansion in 2019, and explore new product lines.
Founded by Daniel Schreiber and Shai Wininger, Lemonade is licensed as a full-stack property/casualty insurance carrier. The company began offering homeowners and renters insurance in New York in late 2016, and is now available in 25 states.
In addition to digitizing the insurance process, Lemonade takes a fixed percentage as a flat fee, and donates a portion of unclaimed premium dollars to nonprofits during its annual ‘Giveback.
Lemonade said it collects “100 times more data than traditional carriers,” enabling the company to generate highly predictive data and improve its underwriting and pricing.
“We’ve watched Lemonade transform insurance using big data and AI, reaching half a million homes in a little over two years – a shockingly rapid pace,” said Shu Nyatta, a senior investment professional within the SoftBank Group and a Lemonade board member. “And we’re confident that the best is yet to come. The value Lemonade provides, together with the values baked into its model, are fast making it one of the most intriguing, differentiated and compelling brands.”
The latest 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.
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