Lemonade Announces Extension of CAC Financing Agreement with General Catalyst

Lemonade (NYSE: LMND), the digital insurance company powered by AI and social impact, today announced the extension and expansion of its financing relationship with General Catalyst (GC) - AKA ‘Synthetic Agents’ - whereby GC finances up to 80% of Lemonade’s spending specifically related to customer acquisition cost (CAC).

Under the original agreement, GC agreed to finance up to $150 million of CAC spend for the 18 months from July 2023 through December 2024. With today’s announcement, the agreement has been extended through December 2025, and an incremental $140 million will be made available to Lemonade.

All other material business terms in the original agreement remain unchanged.

This extension provides additional certainty and tactical support for Lemonade’s capital-light growth strategy - a key assumption underpinning the company’s multi-year view on liquidity, which was discussed in the Q3 2023 Letter to Shareholders.

About Lemonade

Lemonade offers renters, homeowners, car, pet, and life insurance. Powered by artificial intelligence and social impact, Lemonade’s full stack insurance carriers in the US and the EU replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything. A Certified B-Corp, Lemonade gives unused premiums to nonprofits selected by its community, during its annual Giveback. Lemonade is currently available in the United States, Germany, the Netherlands, France, and the UK, and continues to expand globally.

Follow @lemonade_inc on Twitter for updates.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

All statements other than statements of historical fact contained in this Press Release, including without limitation statements regarding the anticipated benefits of the amended and restated customer acquisition agreement with General Catalyst and expectations regarding its impact on our capital-light growth strategy and multi-year view on liquidity, the expected future results of operations and financial position, and our ability to effectively manage the growth of our business are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.