Sequoia-Backed Ethos Triumphs in Public Market Amid Rival Shortcomings

Ethos Technologies, an insurtech company from San Francisco, made its debut on the Nasdaq under the ticker symbol “LIFE.” It launched on Thursday, marking a significant event in the tech IPO landscape as one of the first major listings of the year.

IPO Details and Initial Performance

In the public offering, Ethos and its shareholders raised roughly $200 million by selling 10.5 million shares priced at $19 each. However, the company’s stock closed its first trading day at $16.85, reflecting an 11% decline from its IPO price.

Ethos’ Business Model

• Ethos operates a three-sided platform for buying life insurance policies.
• Customers can purchase policies online in about 10 minutes, without the need for medical exams.
• The platform is utilized by over 10,000 independent agents.
• Insurance carriers like Legal & General America and John Hancock use Ethos for underwriting services.
• Ethos itself is a licensed agency and earns commissions on sales.

Growth and Market Positioning

Founded 10 years ago, Ethos has navigated a challenging market for life insurtech startups. Co-founder Peter Colis pointed out that many competitors from 2016 have either pivoted their business models, been acquired, or failed entirely.

For example:

• Policygenius, with over $250 million in funding, was acquired by Zinnia in 2023.
• Health IQ, which raised more than $200 million, filed for bankruptcy the same year.

Financial Performance and Future Prospects

Despite facing competitive pressures, Ethos focused on profitability starting in 2022, right as the funding climate shifted. This discipline allowed the company to achieve profitability by mid-2023.

In the nine months ending September 30, 2025, Ethos reported:

• Revenue of nearly $278 million.
• Net income of around $46.6 million.

Ethos closed its first public day with a market capitalization of approximately $1.1 billion, which is significantly lower than its prior valuation of $2.7 billion from a private funding round led by SoftBank in July 2021.

Reasons for Going Public

Colis explained that a key motivation for the IPO was to establish greater trust and credibility among potential partners and clients. Public trading signifies longevity in a sector dominated by century-old insurance companies.

Major Stakeholders

Notable investors in Ethos include:

• Sequoia Capital
• Accel
• Google’s venture arm, GV
• SoftBank Vision Fund 2
• General Catalyst
• Heroic Ventures

Sequoia and Accel chose not to sell any shares during the IPO, highlighting their confidence in Ethos’ future. As Ethos continues to grow, it stands out in a market that has seen many competitors falter.