Ethos Technologies IPO Slides 11% in Nasdaq Debut

Ethos Technologies LIFE, an insurance tech company backed by Sequoia and Accel, stumbled on its first day of trading, with shares closing at $16.84, down 11.4% from its IPO price.

Ethos priced its IPO at $19 a share, in the middle of its targeted range, and opened trading at $17.59.

Ethos and its existing investors raised about $200 million in the IPO at a fully diluted market cap of $1.3 billion. It was valued at $2.7 billion in 2021 when it raised $100 million from SoftBank.

The Austin-based company sold 5.1 million shares, while existing shareholders offered 5.4 million shares.

Founded in 2016, Ethos provides analysis tools for life insurance policies and has raised $416 million in total venture funding, per PitchBook data.

The company disclosed about 94,000 active policies as of June 2025, an increase of 70% year-over-year.

Ethos reported $46.6 million in net income for the first three quarters of 2025, up from $39.3 million during the first three quarters of the prior year. It brought in $277.5 million and $188.4 million in revenue over those respective periods.

Following the IPO, Sequoia owned about 12 million shares, while Accel owned about 7.1 million, according to regulatory filings. General Catalyst and GV were also significant existing investors in the company before its IPO.