Lemonade (NYSE: LMND), the digital insurance company powered by AI and social impact, today announced the extension and expansion of its financing relationship with General Catalyst (GC) – AKA ‘Synthetic Agents’ – whereby GC “finances up to 80% of Lemonade’s spending specifically related to customer acquisition cost (CAC).”
Under the original agreement, GC agreed “to finance up to $150 million of CAC spend for the 18 months from July 2023 through December 2024.”
With this latest announcement, the agreement has “been extended through December 2025, and an incremental $140 million will be made available to Lemonade.”
All other material business terms in “the original agreement remain unchanged.”
This extension provides additional certainty and tactical support “for Lemonade’s capital-light growth strategy – a key assumption underpinning the company’s multi-year view on liquidity, which was discussed in the Q3 2023 Letter to Shareholders.”
As mentioned in the update, Lemonade says that it “offers renters, homeowners, car, pet, and life insurance.”
Powered by artificial intelligence and social impact, Lemonade’s full stack insurance carriers in the US and the EU “replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything. A Certified B-Corp, Lemonade gives unused premiums to nonprofits selected by its community, during its annual Giveback. Lemonade is currently available in the United States, Germany, the Netherlands, France, and the UK, and continues to expand globally.”
As covered last year, Lemonade announced it has named two new members to its Board of Directors, Deb Schwartz and Dr. Samer Haj-Yehia, “effective immediately.”
The newly named Directors will “succeed departing Directors Irina Novoselsky and Silvija Martincevic.”
Ms. Schwartz is a seasoned financial leader “skilled at enabling companies to innovate, grow and scale. She is currently the Chief Financial Officer of H1, a leading healthcare data technology company whose mission is to connect the world to the right doctors. Deb previously served as CFO at Cameo, the celebrity video shoutout pioneer, and at Bustle Digital Group, the digital media provider. Deb spent more than a decade as an equity analyst with Goldman Sachs and Credit Suisse, and holds an MBA from Harvard University, and a BA/BS from the University of Pennsylvania.”
Schwartz noted:
“I’ve focused much of my career on developing business and financial strategies that drive growth and innovation. I look forward to working with Daniel, Shai, and the Lemonade Board and leadership team as the Company continues on its path to profitability.”