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3 questions for Lemonade’s IPO

3 questions for Lemonade’s IPO

While we await a recent IPO submitting from closely backed insurtech startup Lemonade, let’s discuss just a little extra about its public providing.

Since our first dig into its S-1 submitting, TechCrunch has spoken to quite a few traders and operators in Lemonade’s house to seek out out if our preliminary learn was off — have been we being too beneficiant or too sort to Lemonade after studying its considerably advanced monetary outcomes?

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The quick reply will not be actually, although there are some optimistic notes and themes price highlighting. This morning, let’s ask three questions on Lemonade’s IPO submitting that may assist us perceive what’s forward for the SoftBank-backed unicorn.

Three questions

1. How rapidly can Lemonade speed up its rental insurance coverage commencement price?

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On the theme of issues that bode properly for Lemonade is its potential to “graduate” prospects from low-cost rental insurance coverage to extra profitable merchandise.

In its S-1 submitting, Lemonade famous this reality early on. After stating {that a} “an entry-level $60 a yr [rental] coverage [corresponds] to $10,000 of possessions,” the corporate mentioned that as its prospects age, they have an inclination to purchase extra insurance coverage and generally swap rental plans for house owner insurance policies. Moving from the previous to the latter is graduating within the firm’s parlance.

If many purchasers moved from rental insurance coverage to house owner insurance coverage whereas preserving Lemonade as their supplier, the corporate might do very properly, as illustrated by this part of its SEC submitting:

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