US-based digital insurance platform developer Lemonade secured $300m in series D funding yesterday from a consortium led by telecommunications and internet group SoftBank.
Insurance provider Allianz and GV, a corporate venturing subsidiary of internet and technology conglomerate Alphabet, also took part in the round, as did equity crowdfunding platform OurCrowd and venture capital firms General Catalyst and Thrive Capital.
The round valued the company at more than $2bn, according to Forbes, and it is expected to close in the next two months.
Lemonade relies on artificial intelligence (AI) and behavioural economics to operate a property and casualty insurance platform that does not rely on brokers. It takes a fixed percentage as a fee and donates a portion of any unclaimed premiums to non-profit organisations.
The funding will enable Lemonade to accelerate its US expansion efforts and enter Europe as it explores the potential expansion of its product offering.
The company has raised $480m in equity financing to date. SoftBank led its $120m series C round in late 2017, investing together with GV, Allianz and insurance firm XL Catlin’s investment arm, XL Innovate.
General Catalyst, Sequoia Capital, Sound Ventures, Thrive Capital, Tusk Ventures and Aleph also backed the series C round, which followed a $34m series B in 2016 backed by GV, Thrive Capital, Tusk Ventures and existing shareholders XL Innovate, Aleph and Sequoia Capital.
XL Innovate had made a “significant” investment in Lemonade earlier in 2016 that was reportedly sized at $14m.
Shu Nyatta, a senior investment professional within SoftBank and board member of Lemonade, said: “We have watched Lemonade transform insurance using big data and AI, reaching half a million homes in a little over two years – a shockingly rapid pace.
“And we are 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.”
