Investors rang up shares of insurance tech startup Lemonade on the New York Stock Exchange on Thursday, celebrating the New York City company’s first day being listed publicly.
Lemonade set its IPO price at $29 per share, slightly higher than ranges previously set. During its first day on the exchange, Lemonade raised $319 million through the sale of 11 million shares. The sale brings valuation of the insurtech startup to $1.6 billion, lower than the $2 billion the company was privately valued after its most recent venture round last year.
Founded in 2016, Lemonade combines AI and distributed ledger technology to lower the cost of traditional consumer property and casualty insurance. The company takes a fixed fee from each monthly payment — which can be as low as $5 — and allocates the rest toward future claims. If a claim is made, Lemonade’s blockchain-backed smart contract system will immediately attempt to verify the loss so a customer can be paid quickly.
The startup’s fast payouts — along with its policy of investing unpaid premiums in nonprofits like the American Civil Liberties Union — has helped make Lemonade the largest provider of renters insurance in the United States, the company said. Lemonade is a B-Corporation, which means it aims to social good as well as generate shareholder profits.
The startup’s ticker symbol is LMND. The company currently has 30 job openings posted on its site, with roles ranging from senior engineering specialist to product line manager to head of new development. Lemonade is backed by several prominent investors including SoftBank, Allianz, Aleph and Sequoia Capital Israel.