Updated Lemonade IPO Filing Indicates Down Round for Insurtech

Today Lemonade, a top Insurtech, filed a Form S-1/A with the Securities and Exchange Commission (SEC). As was recently reported, Lemonade was planning to IPO on the New York Stock Exchange (NYSE) under ticker “LMND.” The updated filing included the expected price per share range which has been pegged at between $23 and $26 a share.

The valuation has been set at approximately $1.4 billion, plus or minus, which stands in contrast to its last funding round which was reported at a $2 billion valuation.

During the current market dynamics, one may wonder why Lemonade would even consider going public but even still, a $1.4 billion valuation for a company that reported gross written premiums of just $116 million in 2019, along with topline revenue of $67 million in the same year, may not be so bad as markets sort out values in the COVID reality.

Squeezed Lemonade

The last funding round for Lemonade raised $300 million led by SoftBank – an investment firm that has recently endured a string of high-profile investment flops – think WeWork that went from a valuation of $47 billion to “just” $2.9 billion.

If Lemonade prices at $26 a share it stands to raise up to $328.9 million (including the over-allotment).

We will learn more in the coming days.


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