Insurtech outfit Lemonade secures USD 120 million in funding

Insurtech outfit Lemonade secures USD 120 million in funding

The Series C funding round was led by SoftBank Group, a technology investment company from Japan that is an active participant in the fintech industry. Other funders included General Catalyst, Sequoia Capital, and GV, which is Alphabet Inc’s investment mechanism.

Lemonade is a start-up that offers a mobile platform for buying home owners and renters insurance. The platform uses AI and machine learning to simplify users’ experiences. It has around 90,000 customers, according to its co-founder and CEO Daniel Schreiber, who also indicated that it does not plan on offering auto insurance. The funds raised will be used for international expansion and creating new coverage products during 2018.

David Thevenon, a senior investment professional for SoftBank, praised Lemonade for its innovative approach: “By combining big data and AI with a seamless user experience, Lemonade is truly revolutionizing the insurance industry.” Another innovative approach the company uses is requiring individuals to choose a charity upon enrolment. The thought behind this has to do with keeping customers honest when it comes to filing claims, and that it’s easier to do so when they know that some of their unused premiums are going towards a good cause rather than a corporate’s coffers.

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