Insurtech Policygenius cuts 25% of staff, less than 3 months after raising $125M – TechCrunch
Policygenius, an insurtech that lifted $125 million in a Collection E round less than 3 months back, has reportedly laid off about 25% of its team.
The range of personnel influenced is not verified but is considered to be all over 170, according to many sources.
Just one employee posted on LinkedIn today that he was between the 25% of personnel that had been let go.
In a statement supplied by way of e-mail, Jennifer Fitzgerald, CEO and co-founder of Policygenius, did not confirm that range, saying:
As with a lot of corporations, the sudden and remarkable shift in the economy has forced us to adapt our system. Right after watchful thought, we introduced the tough and needed choice to lessen the dimensions of our workforce. With these alterations, we continue being self-confident in the upcoming of our organization, our continued innovation, and the superb company we continue on to offer our buyers every working day. This is a hard day for us at Policygenius, and specifically for our personnel who have been right impacted. We’re expressing goodbye to close friends and colleagues who have, through their tough get the job done and determination, assisted construct this firm and provide on our mission for our customers. We’re grateful for their numerous contributions and would like them all the ideal.
At the time of its Collection E in March, Policygenius — whose software package fundamentally allows buyers to discover and acquire distinctive insurance coverage solutions online — reported that its residence and auto insurance policies business had “grown considerably,” with new published rates possessing improved “more than 6x from 2019 to 2021.”
In a push release, the organization claimed: “Policygenius proceeds to be the only tech-enabled brokerage and distribution system to have productively scaled and diversified across existence and home and auto insurance plan. The business will use the new capital to keep on to invest in the progress of its main businesses of everyday living, disability, household, and automobile insurance policies, as properly as new no-test life insurance policies offerings and Policygenius Professional.”
Since its 2014 inception, Policygenius has lifted over $250 million from investors such as KKR, Norwest Venture Companions and Revolution Ventures as perfectly as strategic backers these types of as Brighthouse Fiscal, Global Atlantic Fiscal Group, iA Fiscal Team, Lincoln Monetary and Pacific Existence.
Jennifer Fitzgerald and Francois de Lame, co-founders of Policygenius. Impression Credits: Policygenius
Whilst we just cannot speak exclusively to Policygenius, it’s been broadly noted how poorly insurtech firms have fared in the public markets over the earlier yr with Lemonade, Root and Hippo all trading drastically lessen than their opening rates.
For case in point, as my colleague Alex Wilhelm wrote in January, Lemonade, which sells rental insurance coverage, went public in early July 2020. Root, which focuses on auto insurance plan, went out in Oct of the very same 12 months. Metromile, also in car insurance plan, went general public by way of a SPAC in February 2021. And, last but not least, Hippo, concentrated on household coverage, went public by using a blank check business in August of past calendar year.
It was very the operate of liquidity for businesses that racked up outstanding undertaking backing in their early days.
Considering the fact that then, Metromile announced that it would offer by itself to Lemonade following shedding just about all of its worth these days, Metromile is worthy of about $1.12 for every share, down from a 52-7 days high of $12.74 for every share.
Its friends also struggled. Lemonade has seen its value erode from $115.85 for each share to $21.72 as of the time of producing. Root is well worth $1.48 per share, down from a 52-7 days substantial of $14.70. Hippo is down to $1.42 per share from its 52-week higher of $10.82. Alex and workforce have coated the carnage around the previous few quarters. In January, Root also executed a layoff that affected 330 folks, citing pandemic issues.