Lemonade, Inc.

{{Infobox company

| name = Lemonade, Inc.

| logo = Logo of Lemonade, Inc.svg

| image =

| image_caption = LMND Lemonade Insurance

| type = Public

| traded_as = {{ubl|{{NYSE|LMND}}|Russell 2000 component}}

| industry = Insurance

| founded = {{Start date and age|2015|04}}

| founders = {{ubl|Daniel Schreiber|Shai Wininger}}

| location = New York City

| key_people = {{ubl|Daniel Schreiber (chairperson & co-CEO)|Shai Wininger |(president & co-CEO)|Tim Bixby (CFO)}}

| products = {{ubl|Home insurance|Renters' insurance|Car insurance|Pet insurance|Life insurance}}

| area_served = {{ubl|United States|France|The Netherlands|Germany|United Kingdom}}

| revenue = {{increase}} {{US$|430 million|link=yes}} (2023)

| operating_income = {{increasenegative}} US$−230 million (2023)

| net_income = {{increasenegative}} US$−237 million (2023)

| assets = {{decrease}} US$1.63 billion (2023)

| equity = {{decrease}} US$709 million (2023)

| num_employees = 1,258 (2023)

| subsid = Metromile

| rating = A (Demotech){{Cite web | title=Financial Stability Ratings®: Demotech | url=http://www.demotech.com/search_results_fsr.aspx?id=16023&t=2 | publisher=Demotech | access-date=2017-08-09 | archive-date=2022-05-10 | archive-url=https://web.archive.org/web/20220510215616/https://www.demotech.com/company/16023/ | url-status=live }}

| website = {{URL|https://lemonade.com/}}

| footnotes = {{cite web | url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1691421/000169142124000026/lmnd-20231231.htm | title=Lemonade, Inc. 2023 Form 10-K Annual Report | publisher=U.S. Securities and Exchange Commission | date=28 February 2024}}

}}

Lemonade, Inc. is an American insurance company. The company offers renters' insurance, homeowners' insurance, car insurance, pet insurance, and term life insurance in the United States, as well as contents and liability policies in Germany and the Netherlands and renters' insurance in France. The company is based in New York City and has approximately 1.9 million customers.{{cite web |date= |title=Lemonade, Inc. Shareholder Letter Q1 2023 |url=https://s24.q4cdn.com/139015699/files/doc_financials/2023/q1/Shareholder-Letter-Q1-2023-FINAL-5-3-2023.pdf |archive-url= |archive-date= |access-date= |publisher=Lemonade, Inc.}} Lemonade does not hire human employees to process claims for customers, instead using artificial intelligence and chatbots to process claims.{{Cite news | title=A New York startup shakes up the insurance business | url=https://www.economist.com/finance-and-economics/2017/03/09/a-new-york-startup-shakes-up-the-insurance-business | newspaper=The Economist | date=March 11, 2017 | url-access=subscription | access-date=March 15, 2021 | archive-date=January 19, 2021 | archive-url=https://web.archive.org/web/20210119222340/https://www.economist.com/finance-and-economics/2017/03/09/a-new-york-startup-shakes-up-the-insurance-business | url-status=live }}{{cite news | url=https://www.bizjournals.com/newyork/news/2020/06/25/lemonade-insurer-that-uses-bots-plans-ipo.html | title=Lemonade, insurer that uses bots to replace brokers, plans $286M IPO | first=I-Chun | last=Chen | work=American City Business Journals | date=June 25, 2020 | access-date=March 15, 2021 | archive-date=May 10, 2022 | archive-url=https://web.archive.org/web/20220510215608/https://www.bizjournals.com/newyork/news/2020/06/25/lemonade-insurer-that-uses-bots-plans-ipo.html | url-status=live }}{{cite news | url=https://www.forbes.com/sites/afdhelaziz/2020/03/09/the-power-of-purpose-how-lemonade-is-disrupting-insurance-with-goodness-and-a-new-foundation/?sh=4a3e97c67288 | title=The Power Of Purpose: How Lemonade Is Disrupting Insurance With Goodness (And A New Foundation) | first=Afdel | last=Aziz | work=Forbes | date=March 9, 2020 | url-access=subscription | access-date=March 15, 2021 | archive-date=May 10, 2022 | archive-url=https://web.archive.org/web/20220510215620/https://connatix-d.openx.net/v/1.0/av?auid=539961199&schain=1.0,1!connatix.com,679698455578581,1,,,,&url=https%3A%2F%2Fwww.forbes.com%2Fsites%2Fafdhelaziz%2F2020%2F03%2F09%2Fthe-power-of-purpose-how-lemonade-is-disrupting-insurance-with-goodness-and-a-new-foundation%2F%3Fsh%3D4a3e97c67288&cb=42f1dc26-d3d3-415b-8358-6ed4149d53e7&vwd=579&vht=326&gdpr=0&gdpr_consent=undefined&us_privacy= | url-status=live }}

History

=2015-2019=

Lemonade was founded by Daniel Schreiber (former president of Powermat Technologies) and Shai Wininger (co-founder of Fiverr) in April 2015.{{Cite news | url=https://techcrunch.com/2015/12/08/sequoia-invests-13-million-in-a-seed-round-for-lemonade-which-is-looking-to-transform-insurance/ | title=Sequoia Invests $13 Million In A Seed Round For Lemonade, Which Is Looking To Transform Insurance | work=TechCrunch | last=Shieber | first=Jonathan | date=December 8, 2015 | access-date=August 9, 2017 | archive-date=July 7, 2017 | archive-url=https://web.archive.org/web/20170707155758/https://techcrunch.com/2015/12/08/sequoia-invests-13-million-in-a-seed-round-for-lemonade-which-is-looking-to-transform-insurance/ | url-status=live }}{{cite news |last1=Kauflin |first1=Jeff |last2=Stoller |first2=Kristin |date=May 31, 2019 |title=First, Fire All The Brokers: How Lemonade, A Millennial-Loved Fintech Unicorn, Is Disrupting The Insurance Business |work=Forbes |url=https://www.forbes.com/sites/jeffkauflin/2019/05/02/lemonade-fintech-insurance-unicorn/ |url-status=live |access-date=March 15, 2021 |archive-url=https://web.archive.org/web/20210210010950/https://www.forbes.com/sites/jeffkauflin/2019/05/02/lemonade-fintech-insurance-unicorn/ |archive-date=February 10, 2021}} Schreiber and Wininger were tech entrepreneurs with no insurance background.

In December 2015, the company secured $13 million in seed money from Sequoia Capital and Aleph.{{Cite press release | url=https://www.businesswire.com/news/home/20151208005098/en/Lemonade-Closes-One-of-the-Largest-Seed-Rounds-in-Sequoia%E2%80%99s-History | title=Lemonade Closes One of the Largest Seed Rounds in Sequoia's History | publisher=Business Wire | date=December 8, 2015 | access-date=March 15, 2021 | archive-date=December 10, 2021 | archive-url=https://web.archive.org/web/20211210010357/https://www.businesswire.com/news/home/20151208005098/en/Lemonade-Closes-One-of-the-Largest-Seed-Rounds-in-Sequoia%E2%80%99s-History | url-status=live }}

In August 2016, the company raised $13 million in funding from XL Innovate (part of XL Group), followed by a $34 million Series B funding round in December 2016.{{Cite press release | url=https://www.prnewswire.com/news-releases/lemonade-announces-additional-funding-by-xl-innovate-591015041.html | title=Lemonade Announces Additional Funding by XL Innovate | publisher=PR Newswire | date=August 23, 2016 | access-date=March 15, 2021 | archive-date=March 2, 2021 | archive-url=https://web.archive.org/web/20210302213431/https://www.prnewswire.com/news-releases/lemonade-announces-additional-funding-by-xl-innovate-591015041.html | url-status=live }} The Series B round was led by General Catalyst with participation from Thrive Capital, Tusk Ventures, and GV (formerly Google Ventures).{{Cite news | url=https://www.businessinsider.com/google-participates-in-lemonades-34m-round-2016-12 | title=Google participates in Lemonade's $34M round | work=Business Insider | date=December 7, 2016 | access-date=March 15, 2021 | archive-date=January 31, 2018 | archive-url=https://web.archive.org/web/20180131132709/http://www.businessinsider.com/google-participates-in-lemonades-34m-round-2016-12 | url-status=live }}{{Cite news | url=https://www.wsj.com/articles/insurance-startup-lemonade-raises-34-million-1480957751 | title=Insurance Startup Lemonade Raises $34 Million | first=Yuliya | last=Chernova | work=The Wall Street Journal | date=December 5, 2016 | url-access=subscription | access-date=March 15, 2021 | archive-date=December 30, 2017 | archive-url=https://web.archive.org/web/20171230111251/https://www.wsj.com/articles/insurance-startup-lemonade-raises-34-million-1480957751 | url-status=live }}

In May 2016, Lemonade became one of the few insurance companies to receive B-Corporation certification.{{Cite web | url=https://www.insurancebusinessmag.com/au/news/breaking-news/major-disruptor-lemonade-in-double-industry-first-57508.aspx | title=Major disruptor Lemonade in double industry first | last=Lynn | first=Jordan | work=Insurance Business | date=May 19, 2016 | access-date=March 15, 2021 | archive-date=September 20, 2020 | archive-url=https://web.archive.org/web/20200920212339/https://www.insurancebusinessmag.com/au/news/breaking-news/major-disruptor-lemonade-in-double-industry-first-57508.aspx | url-status=live }}

In April 2017, the company announced additional investors: Allianz and Ashton Kutcher’s Sound Ventures. In December 2017, Softbank invested an additional $120 million in the company in a Series C round, increasing the total money raised by the company to around $180 million.{{Cite news | url=https://www.wsj.com/articles/softbank-leads-120-million-funding-round-for-insurance-startup-lemonade-1513690187 | title=SoftBank Leads $120 Million Funding Round for Insurance Startup Lemonade | first=Allison | last=Prang | work=The Wall Street Journal | date=December 19, 2017 | url-access=subscription | access-date=March 15, 2021 | archive-date=June 18, 2021 | archive-url=https://web.archive.org/web/20210618193450/https://www.wsj.com/articles/softbank-leads-120-million-funding-round-for-insurance-startup-lemonade-1513690187 | url-status=live }}

In April 2019, Lemonade announced a further $300 million investment in a Series D financing led by SoftBank Group, with participation from Allianz, General Catalyst, GV, OurCrowd, and Thrive Capital, increasing the total money raised by the company to $480 million.{{cite news | url=https://fortune.com/2019/04/11/term-sheet-thursday-april-11/ | title=Insurance Tech Startup Lemonade Raises $300 Million in Funding: Term Sheet for Thursday, April 11 | first=Polina | last=Marinova | work=Fortune | date=April 11, 2019 | url-access=subscription | access-date=March 15, 2021 | archive-date=May 17, 2021 | archive-url=https://web.archive.org/web/20210517172629/https://fortune.com/2019/04/11/term-sheet-thursday-april-11/ | url-status=live }}{{cite news | url=https://techcrunch.com/2019/04/11/lemonade-picks-up-300-million-series-d-led-by-softbank-group/ | title=Lemonade picks up $300 million Series D led by SoftBank Group | first=Jordan | last=Crook | work=TechCrunch | date=April 11, 2019 | access-date=March 15, 2021 | archive-date=April 14, 2021 | archive-url=https://web.archive.org/web/20210414080316/https://techcrunch.com/2019/04/11/lemonade-picks-up-300-million-series-d-led-by-softbank-group/ | url-status=live }}

=2020-present=

In April 2020, the company launched in the Netherlands.{{Cite press release | title=Lemonade Launches in the Netherlands | url=https://www.businesswire.com/news/home/20200402005116/en/Lemonade-Launches-Netherlands | publisher=Business Wire | date=April 2, 2020 | access-date=May 3, 2020 | archive-date=May 10, 2020 | archive-url=https://web.archive.org/web/20200510161212/https://www.businesswire.com/news/home/20200402005116/en/Lemonade-Launches-Netherlands | url-status=live }}

On July 1, 2020, the company became a public company via an initial public offering. The company sold 11,000,000 shares of its common stock, each share priced at $29.00, under the ticker symbol "LMND" on the New York Stock Exchange.{{Cite press release | title=Lemonade Announces Pricing of Initial Public Offering | url=https://www.businesswire.com/news/home/20200701005989/en/Lemonade-Announces-Pricing-of-Initial-Public-Offering | publisher=Business Wire | date=July 1, 2020 | access-date=December 8, 2020 | archive-date=May 10, 2022 | archive-url=https://web.archive.org/web/20220510215610/https://www.businesswire.com/news/home/20200701005989/en/Lemonade-Announces-Pricing-of-Initial-Public-Offering | url-status=live }}

In December 2020, it began offering insurance in France.{{Cite news | last=Dillet | first=Romain | title=Lemonade launches its renters insurance in France | url=https://techcrunch.com/2020/12/07/lemonade-launches-its-renters-insurance-in-france/ | work=TechCrunch | date=December 8, 2020 | access-date=December 16, 2020 | archive-date=December 16, 2020 | archive-url=https://web.archive.org/web/20201216182301/https://techcrunch.com/2020/12/07/lemonade-launches-its-renters-insurance-in-france/ | url-status=live }}{{cite news | url=https://www.bizjournals.com/newyork/news/2020/12/09/lemonade-launches-its-insurance-services-in-france.html | title=Lemonade launches its insurance services in France | first=I-Chun | last=Chen | work=American City Business Journals | date=December 9, 2020 | access-date=March 15, 2021 | archive-date=December 9, 2020 | archive-url=https://web.archive.org/web/20201209120105/https://www.bizjournals.com/newyork/news/2020/12/09/lemonade-launches-its-insurance-services-in-france.html | url-status=live }} It also won a trademark dispute with T-Mobile over the use of the color pink.{{cite news | url=https://www.bizjournals.com/newyork/news/2020/12/16/lemonade-wins-in-fight-over-pink-against-t-mobile.html | title=Lemonade wins in fight over the color pink against T-Mobile parent Deutsche Telekom | first=I-Chun | last=Chen | work=American City Business Journals | date=December 16, 2020 | url-access=subscription | access-date=March 15, 2021 | archive-date=December 19, 2020 | archive-url=https://web.archive.org/web/20201219064204/https://www.bizjournals.com/newyork/news/2020/12/16/lemonade-wins-in-fight-over-pink-against-t-mobile.html | url-status=live }}

In May 2021, short-seller Carson Block wrote a letter to Lemonade co-founder and chief executive Daniel Schreiber sharing details of an “accidentally discovered” security flaw that exposed Lemonade customers’ personally identifiable account data. Block wrote that the bug was “unforgivably negligent,” and that his firm was shorting the company’s stock “because it is clear Lemonade does not give a fuck about securing its customers’ sensitive personal information."{{cite news |last1=Whittaker |first1=Zack |title=Short seller says Lemonade website bug exposed insurance customers’ account data |url=https://techcrunch.com/2021/05/13/lemonade-insurance-bug-exposed-account-data/ |work=TechCrunch |date=May 13, 2021}}{{cite web |title=Open Letter to Dan Schreiber; May 13, 2021 |url=https://www.muddywatersresearch.com/wp-content/uploads/2021/05/MW_OpenLetterToLMND_05132021-1.pdf |publisher=Muddy Waters Capital}}

In November 2021, the company announced that it would fully acquire Metromile, Inc.{{cite web |title=Lemonade To Acquire Metromile |url=https://finance.yahoo.com/news/lemonade-acquire-metromile-211000043.html |website=Yahoo |access-date=9 November 2021 |archive-date=9 November 2021 |archive-url=https://web.archive.org/web/20211109015111/https://finance.yahoo.com/news/lemonade-acquire-metromile-211000043.html |url-status=live }} The acquisition completed on July 29, 2022, following which Lemonade laid off 20% of Metromile's staff.{{cite web |url=https://techcrunch.com/2022/07/29/lemonade-closes-on-acquisition-of-insurtech-metromile-promptly-lays-off-about-20-of-its-staff/ |title=Lemonade closes on acquisition of insurtech Metromile, promptly lays off about 20% of its staff |date=29 July 2022 |work=TechCrunch |author=Mary Ann Azevedo}} Metromile has experienced a noticeable premium decline ever since Lemonade completed the acquisition in July 2022.{{Citation needed|date=June 2024}} The company ended the first six months of 2023 with $49 million in written premiums, a 15% decrease compared to the same period in 2022.{{Citation needed|date=June 2024}} In terms of dollars, the most significant decrease occurred in California, which accounts for over 50% of Metromile’s business.{{Citation needed|date=June 2024}} The company saw premiums decline in every state it operates in.{{Citation needed|date=June 2024}}