▼ Summary
– Ethos Technologies is set to go public on Thursday with an IPO priced between $18 and $20 per share, aiming for a valuation up to $1.26 billion.
– The IPO is expected to raise approximately $102.6 million for the company and $108 million for its selling shareholders, with potential for a higher price if investor interest is strong.
– The company, which provides life insurance sales software, is backed by major investors including Sequoia, Accel, GV, SoftBank, General Catalyst, and Heroic Ventures.
– Ethos previously reached a $2.7 billion valuation in 2021 after raising $400 million, with early backing from celebrity family offices like those of Will Smith and Jay-Z.
– Ethos is a profitable company, generating nearly $278 million in revenue and about $46.6 million in net income in the first nine months of the year.
The upcoming public debut of Ethos Technologies is poised to be one of the year’s first significant tech IPOs, marking a major milestone for the life insurance software provider. The company has set its share price between $18 and $20, which would establish an initial valuation reaching up to $1.26 billion. This move is expected to generate approximately $102.6 million in new capital for Ethos, while selling shareholders could see proceeds around $108 million. Strong investor demand could potentially push the final pricing even higher, boosting both the company’s market value and the total funds raised.
Ethos operates a platform that simplifies the process of purchasing life insurance. Its journey to the public markets follows a period of rapid growth, where it attracted substantial backing from prominent venture capital firms. Key investors include Sequoia, Accel, GV (Alphabet’s venture arm), SoftBank, General Catalyst, and Heroic Ventures. Notably, Sequoia and Accel have chosen not to sell their holdings as part of this offering, indicating a vote of confidence in the company’s long-term prospects.
Long before the current focus on artificial intelligence, Ethos was a standout in the startup ecosystem. It secured consecutive large funding rounds through 2021, drawing investment from a notable list of celebrity family offices. Early supporters reportedly included the investment vehicles of Will Smith, Robert Downey Jr., Kevin Durant, and Jay-Z. At its peak in 2021, the company achieved a $2.7 billion valuation after raising a total of $400 million, the majority of which was secured that same year. According to data from PitchBook, its fundraising activity slowed to only minor rounds thereafter.
A key strength highlighted in its IPO filing is a consistent track record of profitability. For the nine-month period ending September 30, Ethos reported robust financials, with revenue nearing $278 million and net income just under $46.6 million. This sustained profitability over several years provides a solid foundation as it transitions into a publicly traded entity, distinguishing it from many other tech companies that seek public funding.
(Source: TechCrunch)
