The case describes how Lemonade, a leading Insurtech startup, expanded its business with a unique AI-powered digital insurance model and a “giveback” charity scheme after its spectacular IPO in 2020. The focus is how its scale-up efforts encountered challenges both externally and internally when it expanded its product portfolio and geographic scope. Lemonade is an exemplary case of hyper-growth startups who aspire to disrupt a legacy industry with digital technologies and novel business models. Yet, how these startups become scalable and sustainable is less understood by both scholars and practitioners. For example, Journal of Business Venturing (JBV), a leading academic journal on entrepreneurship, announced a call for special issue in 2022 with a theme on “Scale-ups, Scaling, and Scalability: Entrepreneurial Scaling in the Digital Age”. This case fills in this gap by examining how Lemonade scaled up during its growth stage, how its scale-up efforts met internal and external resistance, and how to draw valuable lessons.
 AoM Entrepreneurship Division, “Journal of Business Venturing—Scale-ups, Scaling, and Scalability,” April 26, 2021, https://ent.aom.org/ent/events/eventdescription?CalendarEventKey=b83c313e-e9ab-4f3e-ad46-18c56ed91a09&CommunityKey=fe00dbd4-230d-471e-a0ed-420a47166316&Home=%2Fevents%2Fcalendar, accessed April 2022.
- To provide a comprehensive perspective toward venture scale-up process
- To introduce common scale-up strategies adopted by high-growth ventures
- To illustrate tools and metrics that measure the scalability potential of new ventures
- To inspire critical thinking on barriers to the scale-up process, especially for those startups that exploit data analytics and digital technologies
- To enrich understanding of the on-going competitive dynamics in Fintech