Who might’ve seen this coming?
There was a time period when insurtech startups truly promoting their very own insurance coverage merchandise had been scorching tickets within the non-public and public markets. Issues have modified.
The venture-backed insurtech rollout to the general public markets was prolonged. Lemonade, which sells rental insurance coverage, went public in early July 2020. Root, which focuses on auto insurance coverage, went out in October of the identical yr. Metromile, additionally in auto insurance coverage, went public by way of a SPAC in February 2021. And, lastly, Hippo, centered on house protection, went public by way of a clean verify firm in August of final yr.
It was fairly the run of liquidity for corporations that racked up spectacular enterprise backing of their early days.
Since these debuts, nevertheless, the general public markets haven’t proved form. Metromile introduced that it will promote itself to Lemonade after shedding practically all of its worth; right now, Metromile is price round $2 per share, down from a 52-week excessive of simply over $20 per share.
Its friends additionally struggled. Lemonade has seen its worth erode from simply over $188 per share to $38.68 as of the time of writing. Root is price $3.16 per share, down from a 52-week excessive of $25.63. Hippo is right down to $2.62 per share from $15 per share at its peak. We’ve lined the carnage over the previous couple of quarters.
After which there’s Oscar Well being, a shopper well being protection firm that had one hell of an IPO. Our tackle its pricing was a bit impolite, as you may recall: