Lemonade and General Catalyst (GC) – AKA ‘Synthetic Agents’ – have announced the extension and expansion of their financing relationship, solidifying their partnership goal to fuel Lemonade’s capital-light growth strategy.
In this collaboration, GC will continue to finance up to 80% of Lemonade’s spending specifically related to customer acquisition cost (CAC).
The extended agreement, initially covering $150m of CAC spend for the period from July 2023 through December 2024, has now been prolonged until December 2025. Additionally, an incremental $140m will be made available to Lemonade, offering crucial financial support for the company’s customer acquisition efforts.
This extended partnership not only reinforces the commitment between Lemonade and General Catalyst but also provides additional certainty and tactical support for Lemonade’s capital-light growth strategy. The expansion of financial resources, as discussed in the Q3 2023 Letter to Shareholders, underlines the strategic importance of this alliance.
Lemonade, the digital insurance company, operates on the cutting edge of AI and social impact. Their full-stack insurance carriers in the US and the EU revolutionise traditional insurance processes by replacing brokers and bureaucracy with bots and machine learning. Offering various insurance types, including renters, homeowners, car, pet, and life insurance, Lemonade aims for a seamless, paperwork-free experience, with a unique Giveback initiative contributing unused premiums to community-selected nonprofits.
General Catalyst, known as ‘Synthetic Agents’ in this context, plays a pivotal role as a financing partner for Lemonade. Specialising in funding technological innovation, General Catalyst aligns with Lemonade’s mission to leverage AI and social impact in reshaping the insurance landscape.
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