Insurtech Startup Lemonade Files for a US IPO

Lemonade, an insurance technology startup, has filed to go public in the United States, seeking a listing of its common stock on the New York Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term.

In the S-1 form filing with the Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC), the New York-based company has proposed a maximum offering price of $100 million.

The company, however, highlighted that the number of shares and price range for the proposed offerings have not yet been determined.

Licensed as a property and casualty insurance carrier, Lemonade offers insurance to homeowners and renters across the United States. It leverages artificial intelligence and behavioral economics to improve its underwriting and pricing.

“By leveraging technology, data, artificial intelligence, contemporary design, and behavioral economics, we believe we are making insurance more delightful, more affordable, more precise, and more socially impactful,” the S-1 form noted. “To that end, we have built a vertically-integrated company with wholly-owned insurance carriers in the United States and Europe, and the full technology stack to power them.”

The company is also well-funded and raised $480 million from private players since its launch in 2015. The backers of the startup include SoftBank, Sequoia, General Catalyst, Tusk Venture Partners, and many more venture capitals.

The step towards the IPO was made following the $300 million Series D round of the company, closed in April 2019.

Going public when the books are still red

Though the revenues of Lemonade are impressive, it is still a loss-making company.

As mentioned in the S-1 form, the company’s revenue surged 200 percent last year to $67.3 million compared to $22.5 million in 2018. The loss of the company also followed the same trajectory and sored 105 percent to $108.5 million in 2019 - for the previous year, this figure was at $52.9 million.

Despite the IPO filing, the company is expecting a surge in its losses “in the near term” as it is focused on growing its business.