More enjoyable and video games with Lemonade’s public valuation
On the heels of Hippo’s financing round and our expedition of how the private markets appear to be more conservative than public investors at the moment, we’re asking a new question: are a lot of insurtech startups underestimated?
Hippo— an insurtech startup focused on home insurance– put together a $150 million round at a $1.5 billion post-money assessment after growing its gross written premium to $270 million “in the previous 12 months.” At that evaluation, and at pre-adjustment premium scale, < a class="crunchbase-link"href="https://crunchbase.com/organization/hippo"target="_ blank"data-type="organization" data-entity =” hippo”> Hippo is super-cheap compared to Lemonade, another venture-backed insurtech startup that simply went public.
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There’s no need to relitigate Hippo’s evaluation and how the personal markets have valued the company. But our work yesterday does provide us the opportunity to do some enjoyable math on other players in the neo-insurance area, particularly, Root and MetroMile. Utilizing data accumulated from financial filings and evaluation data from Pitchbook and Crunchbase, we can grok how much the 2 firms deserve using Hippo’s and Lemonade’s present premium multiples.
If you aren’t familiar, the mate of startups we’re taking a look at have actually raised well over $1 billion as a group; VCs really believe in them. How they are priced then, and how they exit, will help figure out the results of many an endeavor fund.
So, are other gamers in the startup insurance market cheap at their last personal rate when compared to Lemonade and Hippo? Did their venture backers overpay? Let’s discover.
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.