Jun 8, 2020 - Economy & Business
SoftBank-backed insurer Lemonade files for IPO
Lemonade, a mobile-first digital insurer for homeowners and renters, filed Monday for an IPO.
The big picture: The IPO market is on fire, despite global business slowdowns due to the coronavirus pandemic.
- Lemonade has raised around $480 million from firms like SoftBank Group, Sequoia Capital Israel, Aleph, XL Innovate, General Catalyst, and Thrive Capital.
- The company, which was valued most recently by venture capitalists at $2.1 billion, has both rising revenue and rising losses. Last year, it lost over $108 million on nearly $68 million in revenue, compared to a $53 million loss on $22.5 million in revenue for 2018.
- Its gross loss ratio, a key insurance metric, moved from 108.5% in 2017 to 67.7% in 2019.
The bottom line: This could prove an interesting test for investors, who generally view $100 million as the revenue threshold for new tech issuers.