Warning: these numbers may bring on a sweat!
Israel held fast to its title, “Startup Nation”, in 2020 as the world looked in amazement at a 55% jump in high-tech exits. With a record $15.4 billion in exits, the nation proved its resilience and innovation even amidst the coronavirus pandemic.
A strong majority of the exits during 2020 were represented by initial public offerings (IPO), represented by some 19 Israeli tech firms. Leading were Lemonade Inc., JFrog, and Nano-X.
Let's look deeper into Lemonade.
Lemonade Inc. is an American insurance company that offers renters, homeowners, and pet health policies through its online and app-based platforms. It applies a clear 25% fee across all policies and focuses on a unique user experience to wow its policyholders.( Lemonade Inc.'s homepage)
The company was founded by Israel’s Daniel Schreiber (former president of Powermat), Shai Wininger (co-founder of Fiverr), and Ty Sagalow, in April 2015. This wonder-team approached the over-due pain point of the US population by doing its best to water down, and democratize, the insurance industry as a whole.
While it doesn’t appear to approach the more complex areas of insurance, such as life insurance, it focuses on the younger demographic who are overwhelmed by the thought of sitting down in a cafe with an insurance agent who will ask lofty and complex questions. Not to mention, the constant pressure and push to buy more policies.
Lemonade came in strong leading up to its recent IPO with a celebrity list of investors shelling out nearly half a billion dollars:
- Ashton Kutcher’s Sound Ventures
- Sean Grusd
- Allianz SE
- Sequoia Capital
- Thrive Capital
- GV (formerly Google Ventures)
Their investments have paid off handsomely as the company went public on July 1, 2020, pricing 11 million shares at $29.00 per share on the NYSE.
What makes Lemonade Inc. so delicious!?
With all of the internal complexities, their marketing approach is what seems most unique about Lemonade. They kicked off their public spotlight with a lawsuit concerning the use of their brand color against T-mobile. Their win earned them big PR coverage and brand recognition.(Lemonade logo (left) and Deutsche Telekom logo)
From there, Lemonade pushed forward with highly branded marketing campaigns, focused on the use of this excitement-instilling, relaxed, young color. News sources touted a “Lemonade Wins #FreeThePink Case Against Deutsche Telekom in France”, spinning on-watchers’ heads as we all asked, “who are these guys!?”
Today, the company runs ongoing campaigns of content that nearly have nothing to do with their core product. Articles such as “These Photos Will Remind You of What Makes New York City Great” could easily confuse you as to what they do as a company.(Recent blogs by Lemonade Inc.)
But wait! There’s a strategy here.
Here’s the answer, read closely: Content drives interest. Interest drives engagement. Engagement drives brand appreciation. And brand appreciation drives purchasing.
Lemonade is perched to hit it out of the park. Their strategy is spot on, unique, and set to be a monopoly within its large niche. Keep a close eye on this Israeli startup as it moves into your home as a household name.