You know how your mom is constantly reminding you to sign up for renters insurance, but the paperwork, bureaucracy, and resulting headache just doesn’t seem worth it? That’s where Lemonade — the sleek, smart, AI-powered insurance provider — comes in.
On Tuesday, the NYC-based startup announced a $120 million Series C funding round, led by move-makers SoftBank. Though Lemonade is just over two years old, it has already garnered the attention of investors worldwide, and now boasts a $180 million valuation.
“We share SoftBank’s conviction that big data and machine learning are set to profoundly remake [the insurance] industry,” said Lemonade’s President and co-founder, Shai Wininger, in a statement. “SoftBank has the vision and means to enable this to become a reality.”
We share SoftBank’s conviction that big data and machine learning are set to profoundly remake [the insurance] industry. SoftBank has the vision and means to enable this to become a reality."
Since its 2015 inception, Lemonade has been breaking world records and setting new standards for the homeowner and renter insurance industry. The mobile-focused platform helps individuals enroll for affordable policies using unique AI software that feels a whole lot more like chatting with a friend than filling out reams of small-print documents.
For renters, policies start at just $5 per month, and for homeowners, $25 a month. Once enrolled, Lemonade allows you to submit insurance claims directly through the app, and receive reimbursements for theft, fire and weather damage in as little as three seconds.
“By combining big data and AI with a seamless user experience, Lemonade is truly revolutionizing the insurance industry,” David Thevenon, a senior investor with SoftBank, said in a statement.
Lemonade is truly revolutionizing the insurance industry."
Thevenon also expressed appreciation for Lemonade’s Zero Everything and Giveback policies. Zero Everything allows insurants to claim even small items. “Stolen headphones? Flip flops? No worries!” reads Lemonade’s website.
Giveback is another unique feature of Lemonade; one in which the company itself gives back all unclaimed money to a variety of charitable causes. When enrolling, insurants select a local cause for which they are passionate, and any unclaimed funds in their name are distributed to places such as the ACLU, Meals on Wheels and more.
Presently, Lemonade is available in California, Illinois, New Jersey, New York and Texas, with plans to expand nationally and internationally in the coming year.
Not only was this latest funding a major move for Lemonade, it also continued a string of SoftBank power plays. Though based in Japan, SoftBank has been taking New York City by storm this December. Earlier this month, they led a massive $450 million investment in real-estate startup Compass.