Insurtech Policygenius cuts 25% of staff less than 3 months after raising $125M

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Polygeniusthe insurance company, which raised $125 million in a Series E round less than three months ago, has reportedly laid off 25% of its staff.

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The number of employees affected has not been confirmed, but several sources put it at around 170.

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One employee posted on LinkedIn today that he was among the 25% of laid-off employees.

In an emailed statement, Jennifer Fitzgerald, CEO and co-founder of Policygenius, did not confirm the number, stating:

As is the case with many other companies, the sudden and dramatic shift in the economy forced us to change our strategy. After careful consideration, we have announced the difficult and necessary decision to downsize our workforce. With these changes, we remain confident in the future of our company, our constant innovation and the excellent service we continue to provide to our customers every day.This is a difficult day for us at Policygenius, and especially for our employees who have been directly affected. We say goodbye to friends and colleagues who, through their hard work and dedication, helped create this company and fulfill our mission for our customers. We are grateful for their many contributions and wish them all the best.
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During a Series E in March, Policygenius, whose software essentially allows consumers to find and buy a variety of insurance products online, said its home and auto insurance business has “significantly grown” with new signed premiums up “more than 6 times. from 2019 to 2021”.

The company’s press release states: “Policygenius continues to be the only high-tech brokerage and distribution platform that is successfully scaling and diversifying into the life, home and auto industries. The company will use the new capital to continue investing in the growth of its core life, disability, home and auto insurance business, as well as new no-exam life insurance offerings and Policygenius Pro.”

Since its inception in 2014, Policygenius has raised over $250 million from investors such as KKR, Norwest Venture Partners and Revolution Ventures, as well as strategic sponsors such as Brighthouse Financial, Global Atlantic Financial Group, iA Financial Group, Lincoln Financial and Pacific Life.

Jennifer Fitzgerald and François de Lamey, co-founders of Policygenius

While we can’t speak specifically to Policygenius, it’s been widely reported how poorly Insurtech companies have performed in the public markets over the past year, with Lemonade, Root and Hippo trading well below their opening prices.

For example, as my colleague Alex Wilhelm said wrote in January Lemonade, which sells rental insurance, became public at the beginning of July 2020.. Root, which specializes in auto insurance, released in October of the same year. Metromile, also involved in auto insurance, went public through SPAC in February 2021. And finally, Behemoth, focused on home lighting, went public through company blanche in August last year.

This was a fairly high level of liquidity for companies that received impressive venture capital support in the early days of their existence.

Since then Metromile announced that he would sell himself to Lemonade, losing nearly all of his value; today, Metromile is worth about $1.12 a share, compared to a 52-week high of $12.74 a share.

His peers also struggled. At the time of writing, Lemonade’s price has dropped from $115.85 per share to $21.72. Root is worth $1.48 per share, up from a 52-week high of $14.70. Hippo shares fell to $1.42 a share from a 52-week high of $10.82. Alex and team have covered the carnage over the last few quarters.

In January, Ruth also held dismissal it affected 330 people, citing pandemic concerns.

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