Co-founders Shai Wininger and Daniel Schreiber now hold shares worth just over $ 200 million each. Lemonade stocks are listed under the ticker symbol LMND.
Lemonade co-founders Shai Wininger (left) and Daniel Schreiber. Photo: Ben Kelmer
Insurers, Goldman Sachs, Morgan Stanley and Allen & Co. have the option to buy an additional 1.65 million shares, which means the amount raised is expected to grow.
Lemonade’s IPO sparked Wall Street interest because SoftBank was its largest shareholder and the fact that it had exceeded a $ 1 billion valuation as a private company.
Insurers originally planned for Lemonade to go public at a price of $ 23- $ 26 per share, but high demand led to it rising to $ 26- $ 28 on Wednesday night. In the end, the IPO completed a little above the upper range. Despite high demand, Lemonade will start trading at a valuation of less than the $ 2 billion it earned in its latest round of private funding.
Founded in 2015, Lemonade offers renters and home insurance policies at a fixed monthly rate that can be purchased instantly on its website. Subscription and claims handling are also done digitally and automatically, without human interference, in most cases. The company employs 329 people, about 100 of them in Tel Aviv.
Since its inception, Lemonade has incurred losses of about $ 250 million and is still spending money while also showing rapid growth. In 2019, it tripled its revenue year-over-year to $ 67 million and has reported $ 26 million in revenue for the first quarter of 2020.
