Lemonade raises $300m funding to fuel expansion; SoftBank, Allianz, Google Ventures among investors

AI-powered insurtech company Lemonade has secured $300 million in Series D funding round led by Japanese conglomerate SoftBank Group, with participation from Allianz, General Catalyst, GV (Google Ventures - the venture capital investment arm of Alphabet), OurCrowd, and Thrive Capital.

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

The latest investment brings the company's total funding to date to $480 million. Japanese lender Softbank also led its $120 million funding round in 2017, with Allianz, Sequoia Capital and Google Ventures.

The company was first launched in September 2016 as a licensed insurance carrier offering homeowners and renters insurance.

“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 co-founder, 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 organisation built on a digital substrate, enabling ever faster and more efficient operations, and ever more delighted consumers.”

Shu Nyatta, a senior investment professional within the SoftBank Group and a Lemonade board member, added: “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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