Ethos Technologies’ Strategic Path to a Successful IPO Amid Industry Challenges
Ethos Technologies, a San Francisco-based innovator in life insurance software, made its debut on the Nasdaq under the ticker symbol LIFE, marking one of the first significant tech IPOs of 2026. The company and its selling shareholders raised approximately $200 million by offering 10.5 million shares at $19 each. Despite the stock closing at $16.85 on its first trading day—11% below the IPO price—co-founders Peter Colis and Lingke Wang view this milestone as a testament to their decade-long journey in scaling the business to public-market readiness.
Ethos operates a comprehensive platform that simplifies the life insurance process for consumers, agents, and carriers. Consumers can purchase policies online in just 10 minutes without the need for medical exams. Over 10,000 independent agents utilize Ethos’s software to sell these policies, while major carriers like Legal & General America and John Hancock depend on the platform for underwriting and administrative services. Notably, Ethos functions as a licensed agency, earning commissions on sales rather than acting as an insurer.
Reflecting on the company’s inception, Colis noted the competitive landscape: When we launched [the business], there were like eight or nine other life insurtech startups that looked very similar to Ethos, with similar Series A funding. Over time, many of these competitors have either pivoted, been acquired at sub-scale, remained at sub-scale, or ceased operations.
For instance, Policygenius, which secured over $250 million from investors including KKR and Norwest Venture Partners, was acquired by PE-backed Zinnia in 2023. Similarly, Health IQ, backed by more than $200 million from prominent VCs like Andreessen Horowitz, filed for bankruptcy that same year.
Ethos, having raised over $400 million in venture capital, could have faced a similar fate. However, the company prioritized profitability, especially as the era of abundant capital and easy fundraising waned in 2022. Colis emphasized, Not knowing what the ongoing funding climate would be, we got really serious about ensuring profitability.
This financial discipline led Ethos to achieve profitability by mid-2023. According to its IPO documents, the company maintained a year-over-year revenue growth rate exceeding 50%. In the nine months ending September 30, 2025, Ethos generated nearly $278 million in revenue and just under $46.6 million in net income.
Despite the initial dip in stock price, Ethos’s market capitalization stood at approximately $1.1 billion, a notable decrease from its $2.7 billion valuation during its last private funding round led by SoftBank Vision Fund 2 in July 2021.
When asked about the decision to go public, Colis highlighted the importance of additional trust and credibility for potential partners and clients. He explained that being publicly traded signals the company’s longevity, especially when many major insurance carriers have histories spanning over a century.
Ethos’s largest external shareholders include esteemed firms such as Sequoia, Accel, Google’s venture arm GV, SoftBank, General Catalyst, and Heroic Ventures. Notably, Sequoia and Accel did not sell shares during the IPO, underscoring their continued confidence in the company’s future prospects.
