Lemonade, a rapidly growing insurance technology company founded by CEO Daniel Schreiber and “Chief Lemonade Maker” Shai Wininger, recently announced it raised $300 million in Series D funding led by SoftBank.
Allianz, General Catalyst, GV, OurCrowd, and Thrive Capital also participated in this round. Including this round, Lemonade has raised about $480 million. And Lemonade is reportedly valued at more than $2 billion with this funding round.
Using an artificial intelligence bot for digitizing the insurance selection experience for renters and homeowners, Lemonade asks users a few questions in order to pull quotes. Some of the insurance plans start at $5 per month and it goes up based on a number of variables like how much property a user owns.
Lemonade takes a slice of the users’ monthly payment as its revenue and puts a certain amount away for claims. The unclaimed premiums go towards the charity of choice by the user.
Last year, Lemonade hit $57 million in revenue. And this year, Lemonade is on track to hit $100 million in revenue according to TechCrunch. And so far Lemonade sold 500,000 policies to date.
“Our biggest challenge is managing the growth,” said Schreiber via TechCrunch. “How do you create an organization that has to constantly morph? The organization we were two years ago and the one we 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?”
This investment round will enable Lemonade to expand beyond the U.S. starting with Europe. And Lemonade is planning to make a number of hires across customer support, claims, engineering, and data science.