While we wait for a fresh IPO filing from heavily backed insurtech startup Lemonade, let’s talk a little bit more about its public offering.

Considering that our first dig into its S-1filing, TechCrunch has talked to a number of financiers and operators in Lemonade’s area to discover if our preliminary read was off– were we being too generous or too kind to Lemonade after reading its somewhat complex financial outcomes?


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The short response is not actually, though there are some favorable notes and styles worth highlighting. Today, let’s ask 3 questions about Lemonade’s IPO filing that will help us understand what’s ahead for the SoftBank-backed unicorn.

Three concerns 1. How rapidly can Lemonade accelerate its rental insurance graduation rate?

On the theme of things that bode well for Lemonade is its capability to “graduate” clients from affordable rental insurance to more financially rewarding items.

In its S-1 filing, Lemonade noted this reality early on. After mentioning that a “an entry-level $60 a year [rental] policy [corresponds] to $10,000 of possessions,” the company said that as its customers age, they tend to purchase more insurance and sometimes swap rental prepare for homeowner policies. Moving from the previous to the latter is finishing in the company’s parlance.

If many consumers moved from rental insurance coverage to homeowner insurance while keeping Lemonade as their service provider, the company could do effectively, as illustrated by this area of its SEC filing:

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.