(Image source: Lemonade.)
Lemonade Inc. (New York), has announced the signing of a $120 million Series C funding round led by the SoftBank Group (Tokyo) with participation from existing investors. Lemonade, which debuted with renters insurance in New York in 2016 and is now licensed in 25 states, plans to use the funds to accelerate its global expansion during the coming year. The transaction is expected to close in the first quarter of 2018.
“The insurance brands we know today came of age in the era of the horse-drawn carriage,” comments Daniel Schreiber, CEO, Lemonade. “But insurance is best when powered by AI and behavioral economics, which is why we believe that companies built from scratch, on a digital substrate and with a social mission, will enjoy a structural advantage for decades to come.”
“SoftBank is an ideal partner for us and we are thrilled to have them on board,” comments Shai Wininger, President, Lemonade. “We share SoftBank’s conviction that big data and machine learning are set to profoundly remake our entire industry, and SoftBank has the vision and means to enable this common vision to become a reality.”
SoftBank joins prior investors Aleph, Allianz, General Catalyst, GV (Google Ventures), Sequoia Capital, Sound Ventures, Thrive Capital, Tusk Ventures, and XL Innovate. The SoftBank Group’s David Thevenon will join Lemonade’s board.
Supporting Rapid Growth
“By combining big data and AI with a seamless user experience, Lemonade is truly revolutionizing the insurance industry,” comments David Thevenon, a senior investment professional within the SoftBank Group. “We have been impressed by the team’s creative approach to disrupting the traditional insurance model with innovations like Zero Everything policies and Giveback, and we look forward to supporting the company’s rapid growth.”