Lemonade squeezes $33m more out of investors

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fintech insurtech wealthtech regtech ai cybertech esg news

Peer-to-peer insurance startup Lemonade has picked up $33m in a Series B round of funding according to an SEC Filing.

General Catalyst Partners led the round with participation from GV, Thrive Capital and Tusk Ventures, as well as existing investors Aleph, Sequoia, and XL Innovate.

The New York-based company aims to use artificial intelligence and behavioural economics to offer homeowners and renters insurance policies.

It claims that using bots reduces the bureaucracy and paperwork of human brokers allowing it to offer coverage instantaneously thought its app.

Launching in September the company claimed it sold 142 policies and generated $14,3000 in grow written premiums in its first 48 hours on the market.

Lemonade also differs from traditional insurers by taking a flat 20% of policy rate and rather than keeping money paid as profit the startup will donate unclaimed money to charitable causes.

Currently a licensed insurer in New York, the company has also filed for a license in California and plans to launch there in 2017.

The funding takes Lemonade’s total to more than $60m.

Copyright © 2016 FINTECH GLOBAL

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