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Lemonade executives ringing in the company's IPO at the New York Stock Exchange. Photo by NYSE
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Lemonade’s IPO Lesson: The Information’s Tech Briefing

Photo: Lemonade executives ringing in the company's IPO at the New York Stock Exchange. Photo by NYSE

Next time a venture capitalist like Bill Gurley complains about the IPO process, expect them to use Lemonade’s IPO as Exhibit A. The insurance tech firm priced its IPO at $29 a share this week, implying a market capitalization well below its most recent private valuation of $2.1 billion.

Yet when Lemonade stock started trading Thursday morning, it quickly shot up to $65 and ended up closing just above $69—giving the company a market capitalization of about $3.8 billion. 

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