Disruptor 50 2020

17. Lemonade

Founders: Daniel Schreiber (CEO), Shai Wininger
Launched: 2015
Headquarters: New York City
 $480 million
Valuation: $2.1 billion (PitchBook)
Key technologies:
AI, machine learning
Insurance, financial services
Previous appearances on Disruptor 50 List: 1 (No. 37 in 2019)

George Kavallines

Lemonade co-founders Daniel Schreiber and Shai Wininger created their New York City-based business model to eliminate the conflict of interest between insurers and the insured. It offers insurance — powered by AI, chatbots and behavioral economics — to renters and homeowners. Customers are guided by a chatbot through the application process in under a minute, and claims get paid that quickly as well. It charges renters a monthly subscription rate of $5 and homeowners a monthly rate of $25.

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The company takes this flat fee from insurance applicants and donates, to a charity of the customer's choosing, any leftover money after claims have been paid. Since its launch in 2016, it has sold over 1.2 policies, including renewals, through its AI-powered platform, and handled 29,720 claims, and has given back nearly $850,000 to the nonprofits. The company recently expanded into The Netherlands and Germany and says it will be launching in more EU countries soon. Though Lemonade is still privately held, it made headlines last week after filing for an initial public offering underwritten by Goldman Sachs, Morgan Stanley, Allen & Co. and Barclays. The company is seeking to trade on the New York Stock Exchange under ticker symbol LMND.

In the wake of the coronavirus pandemic, Lemonade is allowing customers suffering from financial hardship to defer their policy payments for up to 60 days while staying covered. It's also extending this grace period to 60 days for folks that already have fallen behind. So far, the company has raised $480 million, including a $300 million round last year from SoftBank, General Catalyst and Thrive Capital.

A look back at the CNBC Disruptor 50: 8 years, 209 companies