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Lemonade

Insurance powered by AI
OTC
Medium risk

Valuation in 2017-2019

Invest in Lemonade

This investment idea is no longer available. New applications are not accepted

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Investment Idea Details
About the company

Lemonade is a licensed insurance carrier, offering homeowners and renters insurance powered by artificial intelligence and behavioral economics.

Lemonade seeks to remedy the shortcomings of traditional insurance business such as system defaults and reduced insurance claims. The company is headquartered in New York, USA.


Market Opportunities

The company was founded in 2015. For 2018, the company recorded over $57 million in sales. In 2019 the revenue is expected to exceed $100 million. The company shows over 100% growth rate per year.

In May 2019 Lemonade announced its expansion into Europe with the launch of its application in Germany. In future the company expects to become the leader of the global insurance market.

Risks

Lemonade competes in insurance industry and faces a competitive landscape, which may affect its long-term viability.

Financials and Valuation

Well-known venture capital firms such as Sequoia Capital (invested in Apple, Instagram, NVIDIA, Medallia, Health Catalyst), Google Ventures (invested in Slack, Uber, Cloudera), General Catalyst (invested in Livongo Health, Hubspot) and others invested in the company.

In its last funding round in April 2019, Lemonade was valued at $2 billion. In June 2019 the company revealed that it had hired Goldman Sachs and JP Morgan as the underwriters and is looking to go public. Given the impressive revenue growth, international expansion and the backup of major venture investors, the company is likely to successfully go public within the year. The potential return on investment will be over 100%.

How Venture Investments Work
1. Searching for Companies

United Traders analysts are in continuous search for OTC offers studying financial reporting, companies’ businesses, their future plans, analyzing them as potential acquisition targets or estimating prospective multifold capitalization increase as well as considering risks that may hinder business growth. The best ideas are offered to our investors.

Publication
25 Sep
Minimum Amount
1 share
2. Buying shares

As part of our service for purchasing shares on the over-the-counter market (pre-IPO, OTC), for its traders and investors United Traders buys units in funds that own equity stakes in private companies. These funds make early-stage investments in private companies or acquire equity stakes from employees of such companies.

Shares Outstanding
Limited
3. Public Offering

United Traders will have shares at its disposal after the IPO. The shares can be sold after the established 6-month Lock-up period. Alternatively, the shares can be hedged for the above period. Prior to the company going public United Traders look for exit options in the OTC market. If we find a great offer, we sell the shares.

Public Offering Date
Pending
Estimated Gains
+150%
4. Taking profit

After the Lock-up period is over, the investment in pre-IPO or OTC will be automatically closed, and generated profits are credited to your account less the applicable UT fees. We offer an opportunity for investors with over $100,000 invested in a specific idea to search for a counterpart in the OTC market individually and to take profits before the company goes public and thereby exiting the trade prior to the Lock-up period expiration.

Exit
̴ 2021
Early Exit

Although it is prohibited to sell shares within the Lock-Up period, our traders find ways to take profits for our investors using various financial instruments: forwards, options, short selling trades, etc.

For an investor the above means that the pre-IPO or OTC investment may be exited after paying a part of its value, usually around 15% which is caused by highly-priced instruments used to close the position. To do so, you should press the respective button in your members area as soon as it becomes active.

The exiting process is similar to making a new investment. You submit a request, we execute it within 1 business day, and your investment is closed at the current exchange price.

Fees

ENTRY FEE

3.5% of the share purchase amount. The fee is charged at confirmation of your investment bid.

EXIT FEE

0.5% of the share sell amount after the trade. The fee is charged at the investment exit.

SUCCESS FEE

20% of the profit gain. The fee is charged only if the trade is profitable at the time of exiting.

EARLY EXIT FEE

Usually a 15% fee is charged subject to the actual situation at the exchange. The fee is calculated individually for each investment.

What Are the Benefits of Investing with United Traders?

WE ARE A RELIABLE PARTNER

Our risk managers will support you throughout the entire transaction life.

HIGH PROFITABILITY

Venture investing is very risky as they involve new or growing companies, and multifold increase in capitalization is expected. We prioritize companies at the pre-IPO stage as they already demonstrate strong financial indicators and plan to go public soon. This approach allows limiting hyper-risks related to insolvency of new companies and substantially increasing profits as compared to investors who buy shares through a subscription just before the IPO.

LOW ENTRY THRESHOLD

To buy the OTC stocks, one would need millions of dollars. We gathered a pool of traders and investors allowing everyone interested to join similar transactions with as much as $10.

Risks

United Traders is experienced in minimizing risks but a future investor should be aware of all risk types:

  • Illiquidity. There is a possibility that early exit from this investment will take more than 1 month.
  • Asymmetric information. Management and current investors have access to more internal information about the company than other market participants.
  • Time uncertainty. There is no information regarding next financing round or exit strategy timeframe (IPO or M&A).
  • Share dilution. The issue of additional shares by a company may reduce the value of shares of existing investors.

Invest in Lemonade

This investment idea is no longer available. New applications are not accepted

View more ideas