Ethos Technologies Makes a Splash on Nasdaq with Life Insurance IPO
Ethos Technologies, the innovative San Francisco-based software provider for selling life insurance, has officially launched on the Nasdaq, marking a significant moment in the world of insurtech. The company debuted as one of the first major tech IPOs of the year, drawing attention as a potential indicator for market trends leading into the 2026 listing cycle.
In the IPO, Ethos and its selling shareholders successfully raised around $200 million by offering 10.5 million shares, priced at $19 per share under the ticker symbol “LIFE.” This straightforward name perfectly encapsulates the company’s mission. Ethos operates a unique three-sided platform that allows consumers to purchase life insurance policies online in just 10 minutes—without the hassle of medical exams. Currently, over 10,000 independent agents leverage Ethos’s software to facilitate sales, while respected carriers like Legal & General America and John Hancock utilize the platform for underwriting and administration. Notably, Ethos is not an insurer itself but functions as a licensed agency that earns commissions on the policies sold.
First-Day Performance and Market Capitalization
Although the stock closed its first day at $16.85, representing an 11% decline from its IPO price, co-founders Peter Colis and Lingke Wang still have reason to celebrate. They have successfully scaled their ten-year-old venture to public market readiness despite facing a competitive landscape that has seen many of their peers falter. “When we launched, there were eight or nine other life insurtech startups that looked very similar to Ethos,” Colis shared with TechCrunch. “Most of those companies have either pivoted, been acquired at subscale, remained subscale, or gone out of business.”
To illustrate this further, Policygenius, which attracted over $250 million in funding from well-known investors like KKR and Norwest Venture Partners, was acquired by Zinnia in 2023. Meanwhile, Health IQ, backed by over $200 million from top venture capitalists such as Andreessen Horowitz, filed for bankruptcy the same year.
Resilience Through Financial Discipline
Ethos has managed to evade a similar fate through significant financial discipline. Recognizing the changing funding climate after 2022, they shifted their focus to profitability. Colis emphasized this strategy: “Not knowing what the ongoing funding climate would be, we got really serious about ensuring profitability.” This focus paid off, enabling the company to achieve profitability by mid-2023, as elaborated in its IPO documents. Since then, Ethos has reported a remarkable year-over-year revenue growth rate exceeding 50%. For the nine months ending September 30, 2025, the company generated nearly $278 million in revenue, with a net income of just under $46.6 million.
Looking Ahead: Market Capitalization and Future Plans
At the end of its debut day, Ethos boasted a market capitalization of approximately $1.1 billion. This valuation is considerably lower than the $2.7 billion achieved during its last private funding round led by SoftBank Vision Fund 2 in July 2021. When asked about the motivations behind going public, Colis noted that gaining “additional trust and credibility” among future partners and clients was paramount. With many major insurance carriers being well over a century old, a public trading status demonstrates Ethos’s commitment to longevity and reliability in the industry.
Ethos also counts several prominent firms among its largest outside shareholders, including Sequoia, Accel, Google’s venture arm GV, and SoftBank, as well as General Catalyst and Heroic Ventures. Notably, Sequoia and Accel chose not to sell any shares during the IPO, signaling strong ongoing support for the company.
Final Thoughts
As Ethos Technologies embarks on this new chapter as a publicly traded company, it sets a precedent for innovation in the insurtech space. With its commitment to efficient service and strong financial management, Ethos positions itself to not only survive but thrive in an evolving market landscape. The company’s journey thus far serves as a testament to resilience and strategic foresight, potentially inspiring other startups in the industry.
