Lemonade, a fast-growing Insurtech focusing on homeowners and renters insurance, has raised $175 million according to a Form D filed with the Securities and Exchange Commission (SEC). The document indicates that Lemonade is seeking up to $300 million in equity capital.
As it stands today, 21 investors have participated in the offering thus an average investment stands at around $8.3 million. According to SEC rules, a Form D must be filed within several weeks of receiving the first check in an exempt offering.
Crowdfund Insider reported earlier this year that Lemonade may be planning an initial public offering (IPO) at a valuation of around $2 billion. Reports indicated that JP Morgan has been selected as the lead bank in the public offering.
Last month, Lemonade made its first foray outside the United States by entering Germany – part of a wider strategy of expanding across the European Union.
A Public Benefit Corporation, Lemonade seeks to address the profound shortcomings of traditional insurance. The company claims that payouts may be deposited within minutes of a claim.
YOU MAY ALSO READ:Nigeria has 12 Cryptocurrency Exchanges
“By injecting technology and transparency into an industry that often lacks both, we’re creating an insurance experience that is fast, affordable, and hassle free. Unlike any other insurance company, we gain nothing by delaying or denying claims (we take a flat fee!), so we handle and pay as many claims instantly as possible.”
At the end of 2018, Lemonade reported over $50 million in sales or 5 times more than year prior. Insured homes were around 425,000 with a coverage value of about $50 billion.