Lemonade Funding Will Help Launch Peer-to-Peer Insurer
Staff Writer | December 14, 2015
Lemonade Inc., announces it will soon launch a peer-to-peer (P2P) insurance company after it secured $13 million in funding in a round led by Aleph and Sequoia Capital.
Lemonade was founded by veteran tech entrepreneurs Daniel Schreiber and Shai Wininger. Schreiber’s experience spans startups to the Fortune 500, most recently as president of Powermat. Wininger took an active role in shaping the worldwide gig economy as the co-founder of Fiverr.com.
“Most Americans view insurance as a necessary evil rather than a social good, and that’s something we’d like to change,” says Schreiber, Lemonade’s CEO. “As a fintech-insurance company, Lemonade is designing around the bureaucracy and conflict that haunt the industry, replacing them with technology and transparency. What makes this exciting is that it requires reinventing the very structure and business model of insurance in ways not available to the legacy insurance carriers.”
It is estimated that P&C insurance generates $1 trillion of gross margins annually and is dependent on a highly centralized and opaque business architecture, which is most prone to disruption, according to Schreiber. Lemonade plans on transforming both the economics and the experience of insurance, injecting radical transparency and delightful experience into domains known for neither.
“We’re challenging the way insurance companies’ work, with a peer-to-peer business model fueled by self-serve technology,” says Wininger, president and CTO. “We’ve seen this kind of combination breathe new life into other industries, and we’re determined to do the same for insurance.”
“It is very unusual for a company to receive $13 million in an initial round of funding,” said Haim Sadger, partner at Sequoia Capital. “But it is rarer still to find such accomplished founders tackling such a sizable industry with such a compelling solution. We’re betting Lemonade will transform the insurance landscape beyond recognition. It is one to watch.”
“I’ve known Lemonade’s founders for years, and we’re thrilled to be part of their journey from the very start. I can think of no entrepreneurs better equipped to reinvent insurance,” said Michael Eisenberg, founding partner at Aleph. “Daniel and Shai are on a mission to deliver a wakeup call for the industry, and a refreshing experience to consumers worldwide.”
Lemonade is headquartered in New York City.
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