Ethos Technologies has priced its initial public offering and expects to go public on Thursday. This will make it one of the first tech IPOs of the year. If it lands in its current price range of eighteen to twenty dollars a share, it will enter the day valued at up to one point two six billion dollars. This would raise one hundred two point six million dollars for the company and about one hundred eight million dollars for its selling shareholders. Should investor interest be high, it could price even higher, leading to a bigger valuation and more money raised.
The company offers software to sell life insurance. It is backed by prominent investors including Sequoia, Accel, Alphabet’s venture capital arm GV, Softbank, General Catalyst, and Heroic Ventures. Sequoia and Accel are not selling shares in the IPO, according to company disclosures.
Ethos was a rising startup star in the pre-AI era, raising one large round after another through 2021. Its early rounds included backing from a notable group of family offices, including those of Will Smith, Robert Downey Jr., Kevin Durant, and Jay Z. The company reached a two point seven billion dollar valuation in 2021, having raised four hundred million dollars by that time, with most of it raised that same year. PitchBook estimates that Ethos completed only very small fundraises after that.
According to its IPO documents, Ethos is profitable and has been for years. In the nine months ending September 30, the company generated almost two hundred seventy-eight million dollars in revenue and just under forty-six point six million dollars in net income.