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

Ethos Technologies, a San Francisco-based insurtech company specializing in life insurance software, made its debut on the Nasdaq on Thursday, marking one of the first major tech IPOs of the year. This launch is being closely monitored as a potential indicator for the upcoming 2026 listing cycle. The company, along with its selling shareholders, managed to raise around $200 million by offering 10.5 million shares priced at $19 each, trading under the ticker symbol 'LIFE.' This name aptly reflects the company's mission. Ethos operates a unique three-sided platform that allows consumers to purchase life insurance policies online in just 10 minutes, eliminating the need for medical exams. The platform is utilized by more than 10,000 independent agents to sell policies, with well-known carriers like Legal & General America and John Hancock using Ethos for underwriting and administrative support. Notably, Ethos is not an insurance provider; it functions as a licensed agency that earns commissions from sales. Despite the excitement surrounding its IPO, Ethos's stock closed its first trading day at $16.85, an 11% drop from its IPO price. However, co-founders Peter Colis and Lingke Wang have much to celebrate, having successfully scaled their decade-old business to the public market. Colis reflected on the competitive landscape when they first launched, noting that at least eight or nine other life insurtech startups were vying for attention with similar funding models. Many of those competitors have since pivoted, been acquired, or even gone out of business. For instance, Policygenius, which raised over $250 million, was acquired in 2023, while Health IQ, which secured more than $200 million, filed for bankruptcy. Ethos, having raised over $400 million in venture capital, steered clear of such pitfalls by prioritizing profitability as the era of easy funding concluded in 2022. Colis emphasized the importance of this financial discipline, which helped the company achieve profitability by mid-2023. The company has since reported year-over-year revenue growth exceeding 50%, generating nearly $278 million in revenue and approximately $46.6 million in net income during the nine months ending September 30, 2025. However, Ethos finished its first day as a public entity with a market capitalization of about $1.1 billion, falling short of the $2.7 billion valuation it attained during its last private funding round led by SoftBank Vision Fund 2 in July 2021. When questioned about the reasoning behind going public, Colis mentioned that enhancing trust and credibility with potential partners and clients was a significant factor. Given that many major insurance carriers have been around for over a century, a public listing signals strength and longevity. Prominent investors backing Ethos include Sequoia, Accel, Google's venture arm GV, and SoftBank, alongside General Catalyst and Heroic Ventures. Notably, Sequoia and Accel opted not to sell any shares during the IPO, as disclosed by the company.