Israeli Insurtech Firm Lemonade Value Up After IPO Shares Surge

US-Israeli insurance tech firm Lemonade raised $319 million with its initial public offering (IPO) on Thursday, selling 11 million shares at $29 apiece, and more than doubling its valuation by the end of the day.

At the target price of $29, the SoftBank-backed company started at a $1.6 billion valuation, excluding underwriters’ options, Crunchbase News reported. But by end-of-day, its shares were trading at $69.38, giving Lemonade a total market capitalization of $3.8 billion.

Goldman Sachs Group, Morgan Stanley, Allen & Co and Barclays are lead underwriters on the offering.

Founded in 2015 by Shai Wininger, also a co-founder of Fiverr, and Daniel Schreiber, Lemonade uses behavioral economics, artificial intelligence, and chatbots to deliver renters and homeowners insurance policies and handle claims quickly for users in nearly two dozen states across the US. It offers renters insurance starting at $5 per month, and homeowners insurance starting at $25 per month.

Last year, the company raised a $300 million Series D funding round led by Japan’s Softbank Group Corporation, with participation from Allianz, General Catalyst, GV, OurCrowd and Thrive Capital.

The New York-based startup is t trading on the New York Stock Exchange under the ticker symbol “LMND.” The offering is expected to close on July 7, 2020, subject to customary closing conditions.