Lemonade, a mobile-first, AI-infused insurance firm backed by chatbots and self-proclaimed ethics, has announced a $120 million series C funding round led by Japanese telecom giant SoftBank. The round saw participation from some existing investors, which include big names such as GV (Google Ventures), Sequoia Capital, and Allianz.
The company told VentureBeat that “most prior investors” participated in this round, though it wouldn’t divulge which ones, specifically.
Founded out of New York in 2015, Lemonade is a fully licensed insurance carrier that underwrites its own policies, unlike many other entrants into the growing insurtech space. With a focus on homeowners and renters, Lemonade strives to differentiate itself in a number of ways, including by cutting bureaucracy and speeding up the application process. However, the company also touts its morals through an annual “giveback” scheme through which it donates all unclaimed money to good causes.
Users choose a cause that they care about through the app, and those who select the same good cause are then penned into virtual groups of “peers,” or like-minded people. Premiums generated from each group are used to cover claims by individuals, and then any money that’s left over is donated to their shared cause. Lemonade takes a flat fee from each member.
For homeowners, policies start at $25 per month, while renters can obtain policies from $5 per month. The whole process is optimized for smartphones, which could be a big selling point in this day and age.
Other notable facets of Lemonade include its chatbots, which are used to…