InsurTech Lemonade secures $300m in latest funding round

InsurTech start-up Lemonade has announced the signing of a $300 million Series D funding round led by SoftBank Group, with participation from …

InsurTech start-up Lemonade has announced the signing of a $300 million Series D funding round led by SoftBank Group, with participation from Allianz, General Catalyst, GV, OurCrowd, and Thrive Capital.

LemonadeLemonade is one of the most high-profile companies to emerge from the insurance technology wave with aims to digitising the entire insurance process; the company claims to collect 100 times more data than traditional carriers.

Lemonade says it plans to use the funds to accelerate its US and European expansion in 2019, and explore new product lines.

“In less than three years, Lemonade has expanded across the US, given back to dozens of charities chosen by our community, and fundamentally changed how a new generation of consumers interacts with insurance,” said Daniel Schreiber, Chief Executive Officer and cofounder, Lemonade.

“Looking forward, we aspire to create the 21st century incarnation of the successful insurance company: a loved global brand that can endure for generations; an organization built on a digital substrate, enabling ever faster and more efficient operations, and ever more delighted consumers.”

This significant funding round comes off the back of an active year for InsurTech investment. Analysts at Deutsche Bank found recently that volumes had increased by more than 60% between 2017 and 2018.

Data also showed that InsurTech investments (across all stages) totalled $2.6 billion during the first three quarters of 2018, compared with $1.6 billion for the same period in the previous year.

Concurrently, recent analysis by two industry executives highlighted that, despite recording robust premium growth in 2018, generating a sustainable loss ratio below 100% remained a challenge for InsurTechs.

This transaction is subject to customary closing conditions including regulatory approvals and targeted to close in Q2 2019.

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Uber Board Seats for SoftBank Imperiled by US National Security Review

When SoftBank Group arranged a $9 billion (roughly Rs. 62,000 crores) purchase of Uber Technologies stock in late 2017, the company negotiated …

When SoftBank Group arranged a $9 billion (roughly Rs. 62,000 crores) purchase of Uber Technologies stock in late 2017, the company negotiated for two seats on the board. Since then, foreign investment in the US has come under heightened scrutiny. Those spots were never filled, and there’s a good chance they never will be.

The Japanese technology conglomerate will lose its claim to those board positions when Uber goes public, people familiar with the matter said. At that time, the company’s bylaws will change, erasing old agreements like the one it had with SoftBank.

The reason for the holdup: SoftBank has yet to secure approval from officials who review deals between American companies and foreign investors. Although the massive investment in Uber was completed and the money was wired more than a year ago, SoftBank spent most of last year sorting through its own accounting and investor approvals of the investment, a person familiar with the process said.

SoftBank didn’t initiate the US review process for the board seats until late last year and still hasn’t formally filed with the Committee on Foreign Investment in the US, the inter-agency panel known as Cfius that reviews corporate deals for national security risks, the person said.

The initial public offering, which seemed like a faraway prospect when the deal was made, is fast approaching. Uber will file a public prospectus as soon as Thursday and start its IPO road show later this month, said people familiar with the plans, who asked not to be identified because the information are private. It’s seeking to raise about $10 billion (roughly Rs. 70,000 crores) and would begin trading next month.

With the board seats in jeopardy, SoftBank would lose its ability to influence the direction of the world’s largest ride-hailing operator. The episode highlights the uncertainties for overseas investors doing business in the era of President Donald Trump. The status of SoftBank’s Cfius submission and the potential for the firm to lose its claim to the Uber board haven’t been previously reported. Spokesmen for SoftBank and Uber declined to comment. Cfius doesn’t comment on its reviews.

Cfius is a powerful and secretive body run by the Treasury Department. It gained expanded authority last year and pays particular attention to deals involving technology companies and those that control data on US citizens. Cfius can impose conditions on a deal or recommend to the president that a transaction be blocked. Often, companies unable to address the committee’s concerns abandon their acquisitions rather than go to the White House.

The panel played a key role in Trump’s decision last year to terminate what would have been the largest technology deal in history, the takeover of San Diego’s Qualcomm by Singapore’s Broadcom Ltd. In a smaller instance reported recently, Cfius told the Chinese owner of Grindr, a gay dating app based in California, that the relationship is a national security risk. The parent company is now looking for a buyer, according to Reuters. The committee also voiced concerns about Chinese ties to a social network that connects people with similar health conditions, and the owner is holding a “fire sale” of the assets, CNBC reported.

SoftBank is no stranger to the Cfius process. It won approval from the panel to buy Sprint and UK chip designer ARM Holdings. But the committee put conditions on its ownership of Sprint and restricted control of Fortress Investment Group when SoftBank bought the alternative-asset manager.

In the case of Uber, SoftBank needed to get approvals from its own investors first. The company took ownership of its sizable Uber stake in January 2018. Then it underwent a process to transfer the shares from SoftBank’s corporate portfolio to the $100 billion tech fund it manages, called the Vision Fund. That wasn’t completed until late last year and was the primary reason for postponing a Cfius submission, a person familiar with the matter said.

The biggest backers of the Vision Fund are based outside the US, including those associated with the governments of Abu Dhabi and Saudi Arabia, as well as Foxconn Technology Group, the Taiwanese assembler of iPhones. SoftBank and its affiliated entities now own roughly 15 percent of Uber, making them the largest shareholder.

Even without SoftBank, Uber has a crowded board. There are currently a dozen directors, with several other seats yet to be filled. In an interview Tuesday on Bloomberg TV, SoftBank Chief Operating Officer Marcelo Claure said there’s “no hurry” for the company to take a place on the Uber board. “They already have quite a sizable board,” he said.

Directors could elect a SoftBank representative after the company goes public, but the nomination at that point would be subject to shareholder approval. Dara Khosrowshahi, Uber’s chief executive officer, has privately expressed other priorities. According to a person familiar with internal discussions, the CEO has said he wants to bring on more independent directors who aren’t executives or major shareholders.

© 2019 Bloomberg LP

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Insurtech Lemonade Raises $300 Million; SoftBank, Allianz, Alphabet Among Investors

… led by SoftBank Group with participation from Allianz, General Catalyst, GV (formerly known as Google Ventures), OurCrowd, and Thrive Capital.

Lemonade, the insurance company built around artificial intelligence and behavioral economics, announced the signing of a $300 million Series D funding round led by SoftBank Group with participation from Allianz, General Catalyst, GV (formerly known as Google Ventures), OurCrowd, and Thrive Capital.

Lemonade said it plans to use the funds to accelerate its U.S. and European expansion in 2019, and explore new product lines.

Founded by Daniel Schreiber and Shai Wininger, Lemonade is licensed as a full-stack property/casualty insurance carrier. The company began offering homeowners and renters insurance in New York in late 2016, and is now available in 25 states.

In addition to digitizing the insurance process, Lemonade takes a fixed percentage as a flat fee, and donates a portion of unclaimed premium dollars to nonprofits during its annual Giveback.

Lemonade said it collects “100 times more data than traditional carriers,” enabling the company to generate highly predictive data and improve its underwriting and pricing.

“We’ve watched Lemonade transform insurance using big data and AI, reaching half a million homes in a little over two years – a shockingly rapid pace,” said Shu Nyatta, a senior investment professional within the SoftBank Group and a Lemonade board member. “And we’re 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.”

The latest investment round, which is targeted to close this quarter, brings the total funding raised by Lemonade to $480 million. It follows a $120 million raise in December 2017 led by Softbank with participation from existing investors.

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Insurtech Lemonade Raises $300 Million; SoftBank, Allianz Among Investors

Insurtech Lemonade Raises $300 Million; SoftBank, Allianz Among … led by SoftBank Group with participation from Allianz, General Catalyst, GV …

Lemonade, the insurance company built around artificial intelligence and behavioral economics, announced the signing of a $300 million Series D funding round led by SoftBank Group with participation from Allianz, General Catalyst, GV (formerly known as Google Ventures), OurCrowd, and Thrive Capital.

Lemonade said it plans to use the funds to accelerate its U.S. and European expansion in 2019, and explore new product lines.

Founded by Daniel Schreiber and Shai Wininger, Lemonade is licensed as a full-stack property/casualty insurance carrier. The company began offering homeowners and renters insurance in New York in late 2016, and is now available in 25 states.

In addition to digitizing the insurance process, Lemonade takes a fixed percentage as a flat fee, and donates a portion of unclaimed premium dollars to nonprofits during its annual Giveback.

Lemonade said it collects “100 times more data than traditional carriers,” enabling the company to generate highly predictive data and improve its underwriting and pricing.

“We’ve watched Lemonade transform insurance using big data and AI, reaching half a million homes in a little over two years – a shockingly rapid pace,” said Shu Nyatta, a senior investment professional within the SoftBank Group and a Lemonade board member. “And we’re 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.”

The latest investment round, which is targeted to close this quarter, brings the total funding raised by Lemonade to $480 million. It follows a $120 million raise in December 2017 led by Softbank with participation from existing investors.

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Lemonade reaches $2bn valuation with $300mn funding round from SoftBank

Shu Nyatta, a senior investment professional within the SoftBank Group and a Lemonade Board Member said that “We’ve watched Lemonade …

Lemonade, an insurance startup that is driven by artificial intelligence and behavioral economics, has signed a US$300mn Series D funding round. The round, which was led by Japanese investor SoftBank, with participation from Allianz, General Catalyst, GV (formerly known as Google Ventures), OurCrowd and Thrive Capital, brings Lemonade’s total valuation to more than $2bn.

Launched in 2016, Lemonade specializes in offering an all-online, mobile insurance platform, with highly-competitive pricing. Since its inception, the service has offered rental insurance for as little as $5 per month, and homeowner’s insurance for as little as $25. The company is currently the top-rated provider of renter’s insurance in the US.

“In less than three years, Lemonade has expanded across the US, given back to dozens of charities chosen by our community, and fundamentally changed how a new generation of consumers interacts with insurance,” said Daniel Schreiber, CEO and cofounder, Lemonade. “Looking forward, we aspire to create the 21st century incarnation of the successful insurance company: a loved global brand that can endure for generations; an organization built on a digital substrate, enabling ever faster and more efficient operations, and ever more delighted consumers.”

Contrary to the traditional insurance model, Lemonade takes a fixed percentage as a flat fee, eliminating the conflict between paying claims and making a profit, and donates a portion of unclaimed premium dollars to nonprofits during its annual ’Giveback.′

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According to Forbes’ report, Lemonade plans to use the money from SoftBank to expand into Europe, and deeper into the US. The company is based primarily in New York and Tel Aviv, but Schreiber has revealed that plans are in place to open a European headquarters in Amsterdam.

Shu Nyatta, a senior investment professional within the SoftBank Group and a Lemonade Board Member said that “We’ve 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’re 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.”

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