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Lemonade raises $300M Series D

The startup provides insurance to homeowners and renters online

Founders Daniel Schreiber and Shai Wininger (Credit: Lemonade)

Insurance startup Lemonade has raised a $300 million Series D round, according to Fortune. The funding round was led by Softbank, and values the company at a whopping $2 billion.

What they do: Lemonade provides insurance to homeowners and renters online. They use a peer-to-peer system to ease the process of paying out claims.

How it works: Lemonade takes a fixed 20% commission from customers premiums. The other 80% is pooled together for covering damage – 40% for short term payouts on claims made by policyholders and 40% for reinsurance (i.e. insurance for an insurance company).

Trust in humanity: Unlike traditional insurers, the startup doesn’t lose money from paying out claims. To prevent insurance fraud they give the remaining pool of money to charity.

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