Lemonade secures $300m to fund expansion

US InsurTech plaform Lemonade has secured $300 million in a Series D funding from SoftBank, taking the firm’s total funding to $480 million.

Founded in 2015, the company uses artificial intelligence (AI) and behavioural economics to provide full-stack property and casualty insurance via a digitised policy process, based on predictive data to assist with underwriting and pricing.

The company said it would use the money to accelerate its expansion in the US and Europe in 2019, including plans to explore new product lines.

The funding round was led by SoftBank’s mega-fund, with participation from Allianz, General Catalyst, GV (formerly known as Google Ventures), OurCrowd and Thrive Capital.

In a reversal of the traditional insurance model, Lemonade takes a fixed percentage as a flat fee, eliminating the conflict between paying claims and making a profit, and donates a portion of unclaimed premium dollars to nonprofits during its annual 'Giveback'.

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