Softbank-backed Lemonade wants to raise up to $286 million in an IPO — valuing the 'insurtech' firm at about 25% less than its latest funding round

• Lemonade, which filed to go public earlier in June, announced on Thursday a price range of $23 to $26 for its public offering.
• The updated regulatory filing could mean a significant valuation hit for the insurtech firm.
• Japan's SoftBank holds a significant stake in the money-losing company, and is hoping to rebound from stumbles by Uber and other portfolio companies.

Lemonade, the buzzy insurance startup backed by Softbank, updated its initial public offering documents on Thursday with a price range for its new shares of $23 to $26.

The 11 million new shares for sale, coupled with existing stock, priced at the middle of that range would give the company a market cap of around $1.3 billion. In its most recent private funding rounds, the buzzy "insurtech" firm was valued as high as $2 billion, according to Pitchbook data.

Softbank, which has had a rocky track record with IPOs of money-losing companies like Uber in recent years, holds a roughly 27% stake in the company.

Read more: $2 billion Lemonade is gearing up for an IPO. Here's why analysts aren't convinced it can successfully challenge State Farm and Allstate

Lemonade — which uses AI chat bots to sell insurance plans to renters, car owners, and more — reported a net loss of $108.5 million in 2019, more than double its 2018 losses. Revenue, meanwhile, increased three-fold in the same span from $21.2 million to $63.8 million.

"We have a history of losses and we may not achieve or maintain profitability in the future," Lemonade's prospectus warns. "We expect that our net loss will increase in the near term as we continue to make such investments to grow our business."

Read more: Masa Son is facing one of his biggest challenges yet as the SoftBank Vision Fund racks up billions in losses. 12 insiders reveal where it all went wrong.

However, the company's founders say there's a $5 trillion annual market opportunity in dragging insurance out of the dark ages.

"As transformative as the prior revolutions were for insurance, there is reason to believe that today's will be even more so," Israeli founders Daniel Schreiber and Shai Wininger wrote in the filing.

"No part of the value chain is immune this time: distribution models, business models, statistical tools, systems of management, cost structures, corporate structures, corporate culture, technology stacks, user experience, marketing channels, data sources, data uses, value propositions, human capital — all these and more are being upended."