The Venture Codex

Participated · Equity · Jun 2018

Ethos operates a big-data life insurance platform that uses more than 300,000 data points to determine eligibility and offers term and whole-life policies starting at about $8/month. It integrates with third-party carriers to provide underwriting, customer service, faster onboarding (often without in-person medical exams) and personalized pricing. The company is sold across 49 U.S. states and is expanding its product set into adjacent areas such as critical illness coverage. Ethos said both revenues and user numbers have grown by over 500% year-over-year and it is on track to issue roughly $20 billion in life insurance coverage this year. The business is approaching $100 million in annualized growth profit but is not yet profitable. The company plans to use new funding to hire more people and accelerate product expansion. Ethos builds a vertically integrated InsurTech platform that underwrites, administers, and distributes life insurance using machine learning and data science to remove traditional underwriting barriers. Its technology enables underwriting with no medical exams, blood tests, or complex paperwork, allowing approval of many who would otherwise be denied. Revenue and users have each grown by more than 500% year‑over‑year, and the company expects to issue $20 billion of life insurance coverage this year. Ethos is nearing $100 million in annualized gross profit and expects increasing EBITDA in the next year, and the article says it has surpassed competitors in annualized revenue and gross profit. The company plans to use new funding to enrich its technology and data platform and to launch new products to expand access to life insurance. Funding raised to date totals $300 million. Ethos is a San Francisco-based life insurance company that uses predictive analytics and data technology to provide life insurance policies. Its application process takes minutes, requires no medical exams for most applicants, and uses no commissioned agents. The company said it will use the funds to accelerate product refinement, hire technical staff, and expand operations. Ethos reported a quadrupling of revenue since October 2018. The financing also supports recent leadership hires, including Head of Finance David Zhang and VP of Insurance Phil Murphy. Peter Colis leads the company as CEO and co-founder. Ethos offers life insurance products that leverage proprietary technology, data science and predictive analytics to estimate life expectancy and streamline applications and claims. The company enables customers to apply and qualify after a ten-minute application versus the traditional ten-week process. A non-commissioned licensed agent is available to provide guidance to applicants. Ethos partners with life-insurance providers including Assurity Life and Munich Re to deliver its policies. The company is licensed in 49 states. Ethos intends to use new funding to continue expanding its business reach. Ethos is a San Francisco insurtech that sells life insurance products via a technology-driven platform designed for quick applications and easy qualification. Using Ethos, customers can apply and qualify for a policy after a ten-minute application and consult with a non-commissioned licensed agent for guidance. The company is licensed in 49 states and was co-founded by Peter Colis and Lingke Wang, who previously co-founded Ovid Life. Ethos intends to use recent funding to accelerate growth and enhance product development. The financing also included a credit facility to support the company’s operations and expansion of its product offering. Sequoia’s partner Roelof Botha will join Ethos’s board as part of the transaction.