In the S-1 form filing with the Securities and Exchange Commission (SEC), the New York-based company has proposed a maximum offering price of $100 million.
The company, however, highlighted that the number of shares and price range for the proposed offerings have not yet been determined.
Licensed as a property and casualty insurance carrier, Lemonade offers insurance to homeowners and renters across the United States. It leverages artificial intelligence and behavioral economics to improve its underwriting and pricing.
“By leveraging technology, data, artificial intelligence, contemporary design, and behavioral economics, we believe we are making insurance more delightful, more affordable, more precise, and more socially impactful,” the S-1 form noted. “To that end, we have built a vertically-integrated company with wholly-owned insurance carriers in the United States and Europe, and the full technology stack to power them.”
The company is also well-funded and raised $480 million from private players since its launch in 2015. The backers of the startup include SoftBank, Sequoia, General Catalyst, Tusk Venture Partners, and many more venture capitals.
The step towards the IPO was made following the $300 million Series D round of the company, closed in April 2019.
Going public when the books are still red
Though the revenues of Lemonade are impressive, it is still a loss-making company.
As mentioned in the S-1 form, the company’s revenue surged 200 percent last year to $67.3 million compared to $22.5 million in 2018. The loss of the company also followed the same trajectory and sored 105 percent to $108.5 million in 2019 – for the previous year, this figure was at $52.9 million.
Despite the IPO filing, the company is expecting a surge in its losses “in the near term” as it is focused on growing its business.