rtmark
LearnBonds.com

SoftBank-backed Lemonade ready to raise $286m from IPO

lemonade insurance IPO

US insurance startup Lemonade plans to raise up to $286m from investors by issuing shares through an initial public offering (IPO), taking advantage of positive momentum triggered by the pandemic.

Lemonade, which relies on technology to collect premiums and pay for claims, plans to sell around 11 million shares in a range between $23 and $26 per share, as the US stock market grows more eager for tech businesses.

The firm, backed by SoftBank’s multi-billion investment fund, has a valuation of $1.4bn based on the higher end of this range. The business plans to take advantage of the momentum for technology-driven businesses to deliver their services, as the pandemic continues to affect more traditional business models.

Lemonade’s IPO would follow the successful recent listing of online used-vehicle seller Vroom (VRM), which managed to raise around $468m from its initial offering, with the stock nearly doubling from its initial listing price of $22 per share on its first day of trading.

vroom stock price since listed

Launching Lemonade shares successfully in the US market would be a big and much-needed win for SoftBank, an Asian conglomerate run by billionaire investor Masayoshi Son, after WeWork’s failed IPO and the poor performance of Uber’s listing, with shares of the ride hailing giant losing nearly 27% since it was listed last year.

Founded in 2015, Lemonade provides home and renters’ insurance policies for US clients along with other forms of insurance in Germany and Netherlands, relying on a web-based and mobile app to issue policies and pay for claims significantly faster than traditional insurers.

The New York-based company claims that it only keeps a fixed fee from the insurance premiums it collects, which is how they manage to pay for claims so fast, while they distribute the remaining unclaimed underwriting profit to charities picked by policy holders during an annual event hosted by the firm.

Meanwhile, SoftBank has not had a good year so far, as the Tokio-based company booked a $17.7bn write-off from the inflated valuation of WeWork’s business, which resulted, along with other losses, in an $18bn operating loss for the year by the end of March.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Alejandro Arrieche

Alejandro is a financial writer with 7 years of experience in financial management and financial analysis. He writes technical content about economics, finance, investments, and real estate and have also assisted financial businesses in building their digital marketing strategy. His favorite topics are value investing and financial analysis.