One-time hot insurance tech Ethos poised to be first tech IPO of the year

Ethos Technologies is gearing up for its initial public offering (IPO), with plans to go public on Thursday. This move positions the company as one of the first tech firms to launch an IPO this year. If the stock is priced within the anticipated range of $18 to $20 per share, it could achieve a market valuation of approximately $1.26 billion at the upper end, successfully raising around $102.6 million for itself and about $108 million for its shareholders. Investor enthusiasm could lead to a higher pricing, which would not only elevate the company's valuation but also increase the total funds raised. Ethos specializes in providing software solutions for selling life insurance, and it has garnered support from notable investors including Sequoia Capital, Accel, Alphabet’s venture arm GV, SoftBank, General Catalyst, and Heroic Ventures. Interestingly, Sequoia and Accel have opted not to sell shares in this IPO, as per the company's disclosures. Once a standout startup before the AI boom, Ethos raised substantial funding through 2021, attracting investments from high-profile family offices, including those of celebrities like Will Smith, Robert Downey Jr., Kevin Durant, and Jay-Z, as stated by TechCrunch in 2018. By 2021, the company reached an impressive valuation of $2.7 billion after securing $400 million in funding, primarily within that year. According to PitchBook, Ethos has conducted only minor fundraising efforts since then. The company has maintained profitability for several years, as revealed in its IPO documentation. For the nine-month period ending September 30, Ethos reported nearly $278 million in revenue, alongside a net income of just under $46.6 million.