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Lemonade, Inc.

Lemonade, Inc. is an American insurance company. The company offers renters' insurance, homeowners' insurance, car insurance, pet insurance, and term life insurance 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 and has approximately 2.9 million customers.[3] Lemonade does not hire human employees to process claims for customers, instead using artificial intelligence and chatbots to process claims.[4][5][6]

History

2015–2019

Lemonade was founded by Daniel Schreiber (former president of Powermat Technologies) and Shai Wininger (co-founder of Fiverr) in April 2015.[7][8] Schreiber and Wininger were tech entrepreneurs with no insurance background.[4]

In December 2015, the company secured $13 million in seed money from Sequoia Capital and Aleph.[7][9]

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.[10] The Series B round was led by General Catalyst with participation from Thrive Capital, Tusk Ventures, and GV (formerly Google Ventures).[11][12]

In May 2016, Lemonade became one of the few insurance companies to receive B-Corporation certification.[13]

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.[14]

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.[15][16]

2020–present

In April 2020, the company launched in the Netherlands.[17]

On July 1, 2020, the company became a public company via an initial public offering. The company sold 11,000,000 shares of its common stock, each share priced at $29.00, under the ticker symbol "LMND" on the New York Stock Exchange.[18]

In December 2020, it began offering insurance in France.[19][20] It also won a trademark dispute with T-Mobile over the use of the color pink.[21]

In May 2021, short-seller Carson Block wrote a letter to Lemonade co-founder and chief executive Daniel Schreiber sharing details of an “accidentally discovered” security flaw that exposed Lemonade customers’ personally identifiable account data. Block wrote that the bug was “unforgivably negligent,” and that his firm was shorting the company's stock “because it is clear Lemonade does not give a fuck about securing its customers’ sensitive personal information."[22][23]

In November 2021, the company announced that it would fully acquire Metromile, Inc.[24] The acquisition completed on July 29, 2022, following which Lemonade laid off 20% of Metromile's staff.[25]

In January 2026, Lemonade partnered with Tesla to launch the Lemonade Autonomous Car Insurance, a first-of-its-kind offering designed specifically for self-driving cars.[26]

See also

  • List of United States insurance companies

External links

References

  1. Financial Stability Ratings®: Demotech Demotech, retrieved 2017-08-09^
  2. Lemonade, Inc. 2023 Form 10-K Annual Report U.S. Securities and Exchange Commission, 28 February 2024^
  3. Lemonade, Inc. Shareholder Letter Q3 2025 Lemonade, Inc.^
  4. A New York startup shakes up the insurance business The Economist, March 11, 2017, retrieved March 15, 2021^
  5. I-Chun Chen. Lemonade, insurer that uses bots to replace brokers, plans $286M IPO American City Business Journals, June 25, 2020, retrieved March 15, 2021^
  6. Afdel Aziz. The Power Of Purpose: How Lemonade Is Disrupting Insurance With Goodness (And A New Foundation) Forbes, March 9, 2020, retrieved March 15, 2021^
  7. Jonathan Shieber. Sequoia Invests $13 Million In A Seed Round For Lemonade, Which Is Looking To Transform Insurance TechCrunch, December 8, 2015, retrieved August 9, 2017^
  8. Jeff Kauflin, Kristin Stoller. First, Fire All The Brokers: How Lemonade, A Millennial-Loved Fintech Unicorn, Is Disrupting The Insurance Business Forbes, May 31, 2019, retrieved March 15, 2021^
  9. Lemonade Closes One of the Largest Seed Rounds in Sequoia's History Business Wire, December 8, 2015, retrieved March 15, 2021^
  10. Lemonade Announces Additional Funding by XL Innovate PR Newswire, August 23, 2016, retrieved March 15, 2021^
  11. Google participates in Lemonade's $34M round Business Insider, December 7, 2016, retrieved March 15, 2021^
  12. Yuliya Chernova. Insurance Startup Lemonade Raises $34 Million The Wall Street Journal, December 5, 2016, retrieved March 15, 2021^
  13. Jordan Lynn. Major disruptor Lemonade in double industry first Insurance Business, May 19, 2016, retrieved March 15, 2021^
  14. Allison Prang. SoftBank Leads $120 Million Funding Round for Insurance Startup Lemonade The Wall Street Journal, December 19, 2017, retrieved March 15, 2021^
  15. Polina Marinova. Insurance Tech Startup Lemonade Raises $300 Million in Funding: Term Sheet for Thursday, April 11 Fortune, April 11, 2019, retrieved March 15, 2021^
  16. Jordan Crook. Lemonade picks up $300 million Series D led by SoftBank Group TechCrunch, April 11, 2019, retrieved March 15, 2021^
  17. Lemonade Launches in the Netherlands Business Wire, April 2, 2020, retrieved May 3, 2020^
  18. Lemonade Announces Pricing of Initial Public Offering Business Wire, July 1, 2020, retrieved December 8, 2020^
  19. Romain Dillet. Lemonade launches its renters insurance in France TechCrunch, December 8, 2020, retrieved December 16, 2020^
  20. I-Chun Chen. Lemonade launches its insurance services in France American City Business Journals, December 9, 2020, retrieved March 15, 2021^
  21. I-Chun Chen. Lemonade wins in fight over the color pink against T-Mobile parent Deutsche Telekom American City Business Journals, December 16, 2020, retrieved March 15, 2021^
  22. Zack Whittaker. Short seller says Lemonade website bug exposed insurance customers' account data TechCrunch, May 13, 2021^
  23. Open Letter to Dan Schreiber; May 13, 2021 Muddy Waters Capital^
  24. Lemonade To Acquire Metromile Yahoo, retrieved 9 November 2021^
  25. Mary Ann Azevedo. Lemonade closes on acquisition of insurtech Metromile, promptly lays off about 20% of its staff TechCrunch, 29 July 2022^
  26. Abhirup Roy. Lemonade to cut insurance rates for Tesla drivers in endorsement of EV maker's software technology Reuters, 22 January 2026^