The founders and other pre-offering shareholders at Israeli digital insurance company Lemonade (NYSE: LMND) could be about to enjoy a big payout, if they choose, as their shares become unblocked, six months after the company's initial public offering (IPO) on Wall Street.
Lemonade's share price fell 14.85% yesterday but is up 4.65% today, giving a market cap of $5.42 billion. Lemonade has been one of the best performing shares on Wall Street this year with a 250% rise since June when the company raised $319 million at a company valuation of $1.6 billion. 44 million shares worth nearly $5 billion will be unblocked today and could be sold.
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 December 29, 2020
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