AI-based insurance tech company Lemonade has raised US$120 million in Series C funding as it looks to expand its operations outside of the US.
Japanese telecom corporation SoftBank Group led the investments, with participation from existing investors such as Aleph,
Allianz, General Catalyst, GV (Google Ventures), Sequoia Capital, Sound Ventures, Thrive Capital, Tusk Ventures, and XL Innovate.
“The insurance brands we know today came of age in the era of the horse-drawn carriage,” said Lemonade CEO and co-founder Daniel Schreiber in a statement. “But insurance is best when powered by AI and behavioral economics, which is why we believe that companies built from scratch, on a digital substrate and with a social mission, will enjoy a structural advantage for decades to come.”
“SoftBank is an ideal partner for us and we are thrilled to have them on board,” commented Lemonade president and co-founder Shai Wininger. “We share SoftBank’s conviction that big data and machine learning are set to profoundly remake our entire industry, and SoftBank has the vision and means to enable this common vision to become a reality.”
A release said that Lemonade plans to use the funds to “accelerate its global expansion” next year.
Following the investments, SoftBank Group’s David Thevenon will join Lemonade’s board.
“By combining big data and AI with a seamless user experience, Lemonade is truly revolutionizing the insurance industry,” remarked Thevenon, a senior investment professional with SoftBank Group. “We have been impressed by the team’s creative approach to disrupting the traditional insurance model with innovations like Zero Everything policies and Giveback, and we look forward to supporting the company’s rapid growth.”
The transaction is expected to close in Q1 2018, subject to regulatory approvals.
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