Sequoia Invests $13 Million In A Seed Round For Lemonade, Which Is Looking To …

In one of a largest seed investments in a firm’s history, Sequoia Capital is committing to a $13 million turn for Lemonade, a association that’s looking to move a thought of peer-to-peer personal word to a U.S.

There is maybe no attention some-more zodiacally reviled than a word attention and Lemonade’s co-founders, Shai Wininger (a co-founder of a jobs marketplace Fiverr) and Daniel Schreiber (the former boss of Powermat), perspective that as a ideal event to come into a U.S. with a potentially disruptive business.

They’re not a initial association to move a idea of peer-to-peer payments to insurance. London-based Guevara, that offers peer-to-peer automobile insurance, and Friendsurance, a Berlin-based association offered peer-based personal and misadventure insurance, have both come to marketplace with variations on a thesis of bringing concepts of a pity economy to insurance.

And while Lemonade arch executive Daniel Schreiber is silent on a forms of products his association will offer, a business models Friendsurance and Guevara are posterior might offer some hints for what’s to come from Lemonade.

Both companies concede process owners to form tiny groups, Premiums are paid into a cash-back pool that allows members of a organisation to get income behind during a finish of a year (if they don’t record any word claims).

It’s one approach to solve a dignified jeopardy that’s during a heart of how insurers make money, and because they’re so disgusting to a ubiquitous public.

Since insurers use non-payment of claims as a distinction center, a beam are weighted for a insurers to screw their business out of contracts from a beginning. It’s this emanate that Lemonade and a European counterparts are aiming to change.

“We are building an word association entirely plumb integrated from a belligerent adult to rethink some of a building blocks of a industry,” says Schreiber (no relation).

Based in New York, a association now has 15 people on staff, including, Schreiber positive me, some titans of a word attention that he just. couldn’t. talk. about.

Schreiber and Wininger began operative together about a year-or-so ago by a introduction of a mutual friend.

The association cites estimates that a skill and misadventure word attention generates $1 trillion of sum margins annually, and those numbers are tough for investors to ignore.

“It is really surprising for a association to accept $13 million in an initial turn of funding,” pronounced Haim Sadger, Partner during Sequoia Capital, in a statement. “But it is rarer still to find such achieved founders rebellious such a large industry… We’re bettingLemonade will renovate a word landscape over recognition. It is one to watch.”

Featured Image: David Hillowitz/Flickr UNDER A CC BY 2.0 LICENSE

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