Israeli insurtech firm Lemonade value up after IPO shares surge

US-Israeli insurance tech firm Lemonade raised USD 319 million with its initial public offering on Thursday, selling 11 million shares at USD 29 apiece, and more than doubling its valuation by the end of the day.

At the target price of USD 29, the SoftBank-backed company started at a USD 1.6 billion valuation, excluding underwriters’ options, Crunchbase News reported. But by end of day, its shares were trading at USD 69.38, giving Lemonade a total market capitalization of USD 3.8 billion.

Goldman Sachs Group, Morgan Stanley, Allen & Co, and Barclays are lead underwriters on the offering.

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Founded in 2015 by Shai Wininger, also a co-founder of Fiverr, and Daniel Schreiber, Lemonade uses behavioral economics, artificial intelligence, and chatbots to deliver renters and homeowners insurance policies and handle claims quickly for users in nearly two dozen states across the US. It offers renters insurance starting at USD 5 per month, and homeowners insurance starting at USD 25 per month.

Last year, the company raised a USD 300 million Series D funding round led by Japan’s Softbank Group Corporation, with participation from Allianz, General Catalyst, GV, OurCrowd, and Thrive Capital.

The New York-based startup is trading on the New York Stock Exchange under the ticker symbol LMND. The offering is expected to close on July 7, 2020, subject to customary closing conditions.

This article first appeared in NoCamels, which covers innovations from Israel for a global audience.