AI-powered insurance platform, Lemonade, has raised $300 million in series D round. The round was led by SoftBank Group. This investment values the company at more than $2 billion.
New York: SoftBanks Group has recently been funding a lot of the upcoming potential startups. This goes no different. They recently invested $300 million in the AI-driven insurance platform, Lemonade. This values the company at more than $2 billion.
The company announced in November to move into Europe, its first major market outside the United States.
Making Lemonade ain’t that easy
Lemonade uses AI-technology to read market trends and insurance stocks. It has digitized the entire insurance process. This is by replacing brokers and paperwork with algorithms and providing policies in as little as 90 seconds and payment of claims in three minutes. The startup says it collects 100 times more data than traditional carriers which will enable it to improve underwriting and pricing.
The company is as young as 3 years old, yet has managed to have 163 employees. During this tenure, they’ve already sold half a million policies. They’re trying to take advantage of the of their low operational costs than traditional companies. This will help the startup build a global digital insurance company. Co-founder and CEO, Daniel Schreiber says that the company is on track of success. They aim to do $100 million revenue this year.
Lemonade holds a good social component. It donates a portion of unclaimed dollars to NGOs.
Our biggest challenge is managing the growth. How do you create an organization that has to constantly morph? The organization we were two years ago and the one we are now have very little in common. We went from one product in one state to now thinking about multiproduct across continents and five office locations. How do you do that without straining the system and continue to provide good, high quality service?
– Schreiber, CEO and Co-Founder
This latest round of funding brings total financing for Lemonade to $480 million.