Extra enjoyable and games with Lemonade’s public valuation
On the heels of Hippo’s funding spherical and our exploration of how the non-public markets seem like more conservative than public investors for the time being, we’re asking a original ask: are a bunch of insurtech startups undervalued?
Hippo — an insurtech startup centered on dwelling insurance protection — build together a $150 million spherical at a $1.5 billion post-money valuation after rising its black written top class to $270 million “in the past 12 months.” At that valuation, and at pre-adjustment top class scale, Hippo is gigantic-low-charge when put next to Lemonade, one other challenge-backed insurtech startup that factual went public.
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There’s no must relitigate Hippo’s valuation and the diagram in which the non-public markets accept as true with valued the agency. However our work yesterday does give us the probability to invent some enjoyable math on other gamers in the neo-insurance protection dwelling, namely, Root and MetroMile. The expend of data accumulated from financial filings and valuation data from Pitchbook and Crunchbase, we can grok how grand the 2 corporations are charge using Hippo’s and Lemonade’s unusual top class multiples.
When you happen to aren’t acquainted, the cohort of startups we’re having a watch at accept as true with raised smartly over $1 billion as a community; VCs in actuality factor in in them. How they are priced then, and the diagram in which they exit, will relief resolve the outcomes of many a challenge fund.
So, are other gamers in the startup insurance protection market low-charge at their ultimate non-public model when put next to Lemonade and Hippo? Did their challenge backers overpay? Let’s earn out.