Behind-The-Scenes with the Man Who's Disrupting a Trillion-Dollar Industry - OkDork.com

Behind-The-Scenes with the Man Who's Disrupting a Trillion-Dollar Industry

Here are 3 crazy facts about Daniel Schreiber:

  • Started his career in British law having to call people “my lord”
  • He thinks the common Silicon Valley “Minimum Viable Product” strategy is dumb
  • His business, Lemonade, is ROCKING it in a really crowded market

During my trip to Israel, I met some incredible entrepreneurs and CEOs.

Daniel Schreiber is one of those people.

Daniel is the CEO and co-founder of Lemonade, a tech startup blowing the doors off the insurance industry.

These guys are no joke — they secured the largest seed investment EVER from Sequoia Capital (the famous venture capital firm behind Apple, PayPal, Instagram, and more).

In this post, you’ll learn 3 key things:

  1. How Daniel went from practicing law to becoming a tech co-founder. If you’re trapped in wantrepreneur land, you’ll want to hear his advice
  2. Why Daniel DOESN’T subscribe to the “Minimum Viable Product” philosophy
  3. How Daniel created a disruptive business in a crowded market


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5 responses to “Behind-The-Scenes with the Man Who's Disrupting a Trillion-Dollar Industry”

Rohan Bhardwaj
January 25, 2019 at 3:35 am

Here is Daniel Schreiber, the CEO of lemonade. Which is an insurance company aiming to disrupt the trillion dollar industry.

You will learn the journey of a law person who becomes the CEO of a software company with remarkable ideas.

How avoiding Minimum Viable Product route was a risky thing and how it payed off.

The simple way to scale in a crowded market. (Hint: Tell a different story)

His law degree helped him as a cushion if anything went wrong. And the moment he dived in, the experiences kept adding and he was pushing himself harder than before.

Being at Sandisk till 2010, the second biggest company to Apple helped him in learning a lot. Since he and his team weren’t competing with apple. Sandisk had different vision. Catering to the lower priced gadgets which comprises of large chunk of consumers to whom Apple wasn’t catering.

Technology has the power to bring out massive change. However many few companies have been able to do that. And he intended to bring out a wave of new ideas, vision and change in the insurance sector.

Why Insurance?

Insurance sector isn’t a loved in general. The consumers are unhappy and they love to apply for false claim. Above all there hasn’t been any good disruption in the sector for more than 100 years.

There is a great opportunity here. If you can bring something to the table which is better, more human and tell a story which connects then people would respond positively.

It is obligatory to say, insurance company isn’t for the faint of heart. There are risk involved. For example, you couldn’t go for the MVP because the consumers would say positive response to our questions. The real test happened when we launched after a 13 months preparation time.

The Business Model

Taking a flat fee is unheard of in an insurance company, his company does that. Giving claim in blazingly fast time, in many cases immediately is something many company shy away from, they do that.

And the most humanizing part of their business is to give any disposable income left from unclaimed amount to charity. Doing this has separated them from other competitors. The consumers know that their money will be claimed or given to charity - they are happy and want to associate with them.

Unconventional Path

Part of the approach is to take the hardest route. For example, they applied for a licence from New York because they knew once they get it then the process for other states would be easy.

One of the biggest challenge was hiring people. Because when your company is new, the consumers look at the history of employees. The great minds they brought to the table had to have an appetite for risk because they are disrupting the industry, unsure about future and lot to learn.

There are obvious challenges in the industry like startups replicating the idea. Or the big insurance companies trying to overshadow us by spending huge money on advertising and other things.

But they are determined because the response has been overwhelming. Starting from securing the largest seed investment EVER from Sequoia Capital to increasing clients every quarter, they are happy.

Which industry do you see as stagnant? What disruption could you imagine? Go wild.

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Sofie
October 14, 2017 at 11:49 am

Couldn't comment on the main Podcast page anymore so doing it here: I absolutely love your podcasts. Both the topics, the people you bring on and the way you interact with them.

One practical thing that would make me love them even more: I download each episode, but the filename is always just the interviewee's name, so I need to change the filename, copy/paste the title and add "NK" to know in my list of podcasts which ones are yours and what they're about, as the names alone don't tell me anything. I'm sure you have international organizational reasons for naming them like this, but a girl can try 🙂

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Luke Holmes
September 8, 2017 at 12:29 am

The MVP argument is an interesting one. I suppose it depends what you call 'minimum viable product'. So many companies use minimum viable product and then expect rapid growth. With that growth comes the necessity for development of infrastructure and customer expectations of product development. Suddenly the minimum viable product is no longer viable. Minimum viable product is all very good but it must allow for your desired growth.

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Baljit
September 5, 2017 at 12:57 pm

Favorite boy band - B2K

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Felix Dragoi
September 5, 2017 at 9:19 am

Not the most interesting talk, I'd say mostly because of the industry, but definitely a down-to-earth and realistic discussion.

I checked their website and you can clearly feel the younger demographic that they're going for. Noah, you can probably check their blog if you haven't, looks pretty neat. Seeing Dan Ariely as part of the "behavioral" team was something that surprised me. I guess it's just about traction or time until it will become bigger.

Also surprised at how many people from Israel are hired in the team, I suppose the Jewish power is real. Nice to see that, especially since I'm also out of the US and have the idea that it's pretty much a US filled market.

One thing I noticed while reading the blog post, it seemed like too much of the content was pushed toward the end. I'm no expert in structuring a blog post, I'm just starting out with my own, but I for one would've probably liked your personal opinion at the end, but might be just me, who's listened to too much Tim Ferriss.

Overall nice read and lemonade seems like a great business, Mr. Daniel seems to know how to run a company efficiently.

//Felix

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