Lemonade, Inc.

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Lemonade, Inc.
TypePublic company
FoundedApril 2015; 6 years ago (2015-04)
FoundersDaniel Schreiber
Shai Wininger
HeadquartersNew York City, United States
Area served
United States
The Netherlands
Key people
Daniel Schreiber, Chairperson & CEO
Shai Wininger, President & COO
Tim Bixby, CFO
ProductsHome insurance
Renters' insurance
Pet insurance
Life insurance
RevenueIncrease $94 million (2020)
Increase -$120 million (2020)
Total assetsIncrease $828 million (2020)
Total equityIncrease $541 million (2020)
Number of employees
567 (2020)
Footnotes / references

Lemonade Inc. offers renters' insurance, homeowners' insurance, and pet insurance policies in the United States as well as contents and liability policies in Germany, The Netherlands, and France. It is based in New York City. It uses artificial intelligence and chatbots to process claims and set a world record for processing a claim in 3 seconds.[2][3][4] Its business model includes annually giving a portion of its underwriting profits to a nonprofit organization chosen by each customer upon signup.[5][6] It has approximately 1 million customers and 70% of its customers are under the age of 35.[1]

It keeps a flat 25% fee of a customer's premium while setting aside the remaining 75% to pay claims and purchase reinsurance giving it less of an incentive to deny claims or make smaller payouts.[1][7]

Lemonade underwrites its own policies and obtains reinsurance from Lloyd's of London.[8]

Demotech rates Lemonade’s financial stability as A (Exceptional).[9]

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."[10] Lemonade is licensed to offer insurance products in 28 states within the U.S. [11]


Lemonade was founded by Daniel Schreiber (former president of Powermat Technologies), Shai Wininger (co-founder of Fiverr) and Ty Sagalow, in April 2015.[12] Dan Ariely joined in 2017 as the Chief Behavioral Officer.[13]

In December 2015, the company secured $13 million in seed money from Sequoia Capital and Aleph.[12][14]

In August 2016, the company raised $13 million in funding from XL Innovate (part of XL Group), followed by a $34 million Series B funding round in December 2016.[15] The Series B round was led by General Catalyst with participation from Thrive Capital, Tusk Ventures, and GV (formerly Google Ventures).[16][17]

In May 2016, Lemonade became one of the few insurance companies to receive B-Corporation certification.[18]

In April 2017, the company announced additional investors: Allianz and Ashton Kutcher’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.[19][20]

In April 2019, Lemonade announced a further $300 million investment in a Series D financing led by SoftBank Group, with participation from Allianz, General Catalyst, GV, OurCrowd, and Thrive Capital, increasing the total money raised by the company to $480 million.[21][22][23]

In April 2020, the company launched in the Netherlands.[24]

On July 1, 2020, the company became a public company via an initial public offering.[25]

In December 2020, it began offering insurance in France.[26][27] It also won a trademark dispute with T-Mobile over the use of the color pink.[28]

See also[edit]


  1. ^ a b c "Lemonade, Inc. 2020 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ "A New York startup shakes up the insurance business". The Economist. March 11, 2017.
  3. ^ Chen, I-Chun (June 25, 2020). "Lemonade, insurer that uses bots to replace brokers, plans $286M IPO". American City Business Journals.
  4. ^ Aziz, Afdel (March 9, 2020). "The Power Of Purpose: How Lemonade Is Disrupting Insurance With Goodness (And A New Foundation)". Forbes.
  5. ^ Broughton, Kristin (August 30, 2020). "Lemonade CFO Promotes Do-Good Status, Path to Profitability to New Investors". The Wall Street Journal.
  6. ^ Kauflin, Jeff; Stoller, Kristin (May 31, 2019). "First, Fire All The Brokers: How Lemonade, A Millennial-Loved Fintech Unicorn, Is Disrupting The Insurance Business". Forbes.
  7. ^ Moodie, Alison (January 28, 2017). "How artificial intelligence could help make the insurance industry trustworthy". The Guardian. ISSN 0261-3077.
  8. ^ "Leading Reinsurers Line Up for Lemonade, the P2P Insurer". Insurance Journal. September 9, 2016.
  9. ^ "Financial Stability Ratings®: Demotech". Demotech.
  10. ^ Moodie, Alison (January 28, 2017). "How artificial intelligence could help make the insurance industry trustworthy". The Guardian. ISSN 0261-3077.
  11. ^ "Lemonade Insurance Review". Surfky. Retrieved 2021-02-19.
  12. ^ a b Shieber, Jonathan (December 8, 2015). "Sequoia Invests $13 Million In A Seed Round For Lemonade, Which Is Looking To Transform Insurance". TechCrunch.
  13. ^ Baer, Drake (February 24, 2016). "A top psychologist says insurance sucks, so he's joining a startup to fix it". Business Insider.
  14. ^ "Lemonade Closes One of the Largest Seed Rounds in Sequoia's History" (Press release). Business Wire. December 8, 2015.
  15. ^ "Lemonade Announces Additional Funding by XL Innovate" (Press release). PR Newswire. August 23, 2016.
  16. ^ "Google participates in Lemonade's $34M round". Business Insider. December 7, 2016.
  17. ^ Chernova, Yuliya (December 5, 2016). "Insurance Startup Lemonade Raises $34 Million". The Wall Street Journal.
  18. ^ Lynn, Jordan (May 19, 2016). "Major disruptor Lemonade in double industry first". Insurance Business.
  19. ^ Page, Holden (December 19, 2017). "Lemonade Raises A $120M Series C, Softbank's Fourth Investment Into A Property Startup". Crunchbase.
  20. ^ Prang, Allison (December 19, 2017). "SoftBank Leads $120 Million Funding Round for Insurance Startup Lemonade". The Wall Street Journal.
  21. ^ Azevedo, Mary Ann (April 11, 2019). "Insurance Startup Lemonade Gets Sweeter With $300M Infusion". Crunchbase.
  22. ^ MARINOVA, POLINA (April 11, 2019). "Insurance Tech Startup Lemonade Raises $300 Million in Funding: Term Sheet for Thursday, April 11". Fortune.
  23. ^ Crook, Jordan (April 11, 2019). "Lemonade picks up $300 million Series D led by SoftBank Group". TechCrunch.
  24. ^ "Lemonade Launches in the Netherlands" (Press release). Business Wire. April 2, 2020.
  25. ^ "Lemonade Announces Pricing of Initial Public Offering" (Press release). Business Wire. July 1, 2020.
  26. ^ Dillet, Romain (December 8, 2020). "Lemonade launches its renters insurance in France". TechCrunch.
  27. ^ Chen, I-Chun (December 9, 2020). "Lemonade launches its insurance services in France". American City Business Journals.
  28. ^ Chen, I-Chun (December 16, 2020). "Lemonade wins in fight over the color pink against T-Mobile parent Deutsche Telekom". American City Business Journals.

External links[edit]