Israeli digital insurance company Lemonade (NYSE: LMND) saw its share price reach a new record at the end of last week. Investors had been concerned that there would be a large selloff of shares in late December with the founders and other pre-IPO investors 44 million shares becoming unblocked six months after the company’s IPO.
On December 28, Lemonade’s share price fell 14.85% , giving a market cap of $5 billion, on these concerns, which failed to materialize. Lemonade was one of the best performing shares on Wall Street last year with a 300% rise since June, when the company raised $319 million at a company valuation of $1.6 billion. This month, once it had become clear that there would be no major selloff, the company’s share price has picked up pace, rising 27.52% on Thursday and a further 5.62% on Friday to a record high $160.74, giving a market cap of $9.069 billion – a rise of 550% since its IPO.
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Lemonade was founded in Israel in 2015 by CEO Daniel Schreiber and president Shai Winninger. The company, which sells online insurance for homeowners, renters and pet health based on its big data and AI algorithms, has 329 employees, 59% of them in the US and the rest, mainly in Israel.
In addition to the founders, other major shareholders include Japan’s Softbank, with a 21.8% stake after the offering as well as Sequoia and Aleph (8.3% each), Catalyst Fund (5.9%), and the XL Innovate (4.2%). Schreiber has a 6.4% stake and Winninger has a 7.2% stake. Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) also has a small stake after investing $30 million in Lemonade last year.
Published by Globes, Israel business news – en.globes.co.il – on January 10, 2021
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