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Home » AI News » How Sequoia-backed Ethos reached the public market while rivals fell short
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AI News

How Sequoia-backed Ethos reached the public market while rivals fell short

CryptoAINewsBy CryptoAINewsJanuary 30, 2026No Comments3 Mins Read
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Ethos Applied sciences, a San Francisco-based supplier of software program for promoting life insurance coverage, debuted on the Nasdaq on Thursday. As one of many 12 months’s first main tech IPOs, the insurtech platform is being carefully watched as a bellwether for the 2026 itemizing cycle.

The corporate and its promoting shareholders raised roughly $200 million within the providing, promoting 10.5 million shares at $19 every underneath the ticker image “LIFE” — one of many extra on-the-nose decisions in latest reminiscence. The identify matches. Ethos runs a three-sided platform the place customers purchase insurance policies on-line in 10 minutes with out medical exams. It says over 10,000 impartial brokers use its software program to promote these insurance policies and that carriers like Authorized & Normal America and John Hancock depend on it for underwriting and administrative companies. Ethos itself isn’t an insurer — it’s a licensed company incomes commissions on gross sales.

Although the corporate’s inventory closed its first day as a public firm at $16.85, 11% beneath its IPO value of $19, Ethos co-founders Peter Colis and Lingke Wang nonetheless have a lot to have fun, having grown the 10-year-old enterprise to public-market scale.

“After we launched [the business], there have been like eight or 9 different life insurtech startups that regarded similar to Ethos, with comparable Collection A funding,” Colis informed TechCrunch. “Over time, the overwhelming majority of these startups have pivoted, been acquired at subscale, stay at subscale or gone out of enterprise.”

For example, Policygenius, which raised over $250 million from traders, together with KKR and Norwest Enterprise Companions, was acquired by PE-backed Zinnia in 2023. In the meantime, Well being IQ, a startup that secured greater than $200 million from outstanding VCs like Andreessen Horowitz, filed for bankruptcy that very same 12 months.

Ethos, which has raised over $400 million in enterprise capital, may have simply succumbed to an analogous destiny. As a substitute, the corporate remained laser-focused on reaching profitability because the period of low cost capital and simple fundraising got here to an finish in 2022. “Not understanding what the continued funding local weather could be, we received actually severe about making certain profitability,” Colis stated.

That monetary self-discipline reworked it right into a worthwhile firm by mid-2023, in keeping with its IPO documents. Since then, Ethos has additionally maintained a year-over-year income development price of greater than 50%. In the 9 months ending September 30, 2025, the corporate generated virtually $278 million in income and just below $46.6 million in web revenue.

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June 23, 2026

Nonetheless, the corporate ended its first day as a public firm with a market capitalization of about $1.1 billion, a valuation that’s considerably beneath the $2.7 billion it garnered in its final non-public spherical led by SoftBank Imaginative and prescient Fund 2 in July 2021.

When requested why Ethos went public, Colis stated {that a} large a part of the explanation was to convey “extra belief and credibility” to potential companions and purchasers. He defined that as a result of many main insurance coverage carriers are over a century previous, being publicly traded alerts the corporate’s endurance.

The biggest exterior shareholders of Ethos embody outstanding corporations, together with Sequoia, Accel, Google’s enterprise arm GV, and SoftBank, in addition to Normal Catalyst and Heroic Ventures. Sequoia and Accel didn’t promote shares within the IPO, the corporate disclosed.



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