Lemonade delays IPO
After we predicted that Lemonade will file for an IPO which was later confirmed by Israeli news website CTech, Business Insider reports that the SoftBank-backed company will delay its plans due to “concerns about how fast-growing tech firms are being viewed by the market.”
With $480 million in funding, Lemonade is still losing money as of the first six months of 2019. In what seems to be an effort to increase revenue without increasing premiums, Lemonade has raised the personal property default coverage amount for new quotes to $50k as if the average millennial that’s renting has $50k worth of stuff. And for some clients it has increased premiums:
Bottom Line: What happens to lemonade that stays out for too long?