Tech Allianz invests in startup Lemonade
German insurance giant Allianz SE announced that it had made a “strategic investment” in Lemonade Insurance Company. Based in New York and founded and run by two Israelis, Lemonade leverages artificial intelligence and behavioral economics to sell insurance policies.
The two companies did not disclose the terms of the investment. “We looked for ways to collaborate, respecting the fact that Lemonade is a small company facing a large and challenging market in the United States. There are potential synergies and our partnership will allow us to explore our joint potential over time,” stated Solmaz Altin, head of digital operations at Allianz.
Lemonade has raised $60 million since it was founded in New York 18 months ago by Daniel Schreiber and Shai Wininger.
The online company began selling homeowners and renters insurance in New York in September and in April was approved to operate in Illinois as well. Lemonade offers low-cost policies and allows policyholders to file claims in minutes on their mobile devices.
Private equity fund Fortissimo participates in the Biological Industries fund
Fortissimo Capital, an Israeli private equity fund, is investing NIS 40 million ($11 million) in Biological Industries, owned by Kibbutz Beit Haemek. The company supplies the life sciences industry with products ranging from classic cell culture media to supplements for stem cell research, products that could eventually be used for the cultivation of artificial organs.
The fund is buying 32% of the company, with an option to increase its stake to 50%. The 40 million shekels will be used to buy out existing shareholders, boost marketing in the United States and Asia, expand research and development and build a new factory. Founded in 1981, Biological Industries markets about 50 products and has more than 100 employees. The company has offices in China, France and the United States.
Pelephone will retire the old CDMA telephone service
Pelephone, Bezeq's mobile phone unit, will soon decommission its aging CDMA network (based on cellular standards) after receiving approval from the Ministry of Communications this week. First introduced in 1992, CDMA marked the second generation of cellular technology and was the first to use digital encryption of conversations, data services and SMS text messages.
Pelephone moved almost all of its customers to 3G GSM technology in 2009, but a few customers continue to use CDMA, including public officials. They will be notified of the change and offered new phones with the same numbers before the system is canceled on July 30, the Communications Ministry said. Although withdrawing CDMA was a ministerial initiative, aimed at improving bandwidth efficiency, Pelephone will be able to save the costs of operating the network and paying for a frequency license. It will continue to operate 3G UMTS and 4G LTE services.
Ticketing startup TopTix sold for $56 million
TopTix, an Israeli software company that develops ticketing applications for the entertainment industry, has been sold to SeatGeek for $56 million.
The purchase price includes the Israeli Carmiel development center and its six subsidiaries in Europe, the United States and Australia. SeatGeek offers a search engine for purchasing tickets for performances and sporting events.
TopTix was founded by Eli Dagan and Yehuda Yuval in 2000. Since its launch, it has attracted investments of $4 million, $2.5 million of which was from European fund Brevan Howard, which has a 20% stake in the company. The company employs 47 people in Israel and 70 abroad.
Israeli employees will share about $8 million, some through the exercise of their options and some as bonuses.
The company's software allows consumers to see, in real time, how many seats are still available for an event, as well as providing institutions with a platform to manage their regular customers and subscribers. ■