One-time hot insurance tech Ethos poised to be first tech IPO of the year

Once one of the hottest names in insurance technology, Ethos Technologies is set to become one of the first technology companies to go public this year after pricing its initial public offering, with trading expected to begin on Thursday.

If the offering prices within its proposed range of $18 to $20 per share, Ethos would debut with a valuation of up to $1.26 billion. At the top end of that range, the company would raise approximately $102.6 million, while existing shareholders would generate about $108 million from the sale of their shares. Stronger-than-expected demand could push the final price higher, leading to a larger valuation and higher proceeds.

Ethos develops software designed to help sell life insurance and counts a roster of well-known backers. Its investors include Sequoia Capital, Accel, GV, SoftBank, General Catalyst, and Heroic Ventures. In its IPO filing, the company disclosed that Sequoia and Accel are not selling any shares in the offering.

Ethos was a standout startup in the years before the current AI-driven investment cycle, raising multiple large funding rounds through 2021. In its earliest rounds, the company attracted backing from a notable group of family offices, including those associated with Will Smith, Robert Downey Jr., Kevin Durant, and Jay-Z.

By 2021, Ethos had reached a valuation of $2.7 billion after raising a total of $400 million, with the majority of that capital raised that year. Since then, the company has completed only modest fundraising rounds, according to PitchBook estimates.

Financial disclosures tied to the IPO show that Ethos has been profitable for several years. In the nine months ending September 30, the company reported nearly $278 million in revenue and just under $46.6 million in net income.