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One-time hot insurance tech Ethos poised to be first tech IPO of the year
Ethos Technologies is set to be the first tech IPO of 2023, pricing shares between $18 to $20, potentially valuing the company at $1.26 billion. The IPO aims to raise $102.6 million for Ethos and $108 million for selling shareholders. Previously valued at $2.7 billion in 2021, Ethos has raised significant funding and is profitable, generating $278 million in revenue over nine months.
Key points
- Ethos Technologies is pricing its IPO between $18-$20 per share.
- If successful, it will be valued at $1.26 billion on the high end.
- The IPO aims to raise $102.6 million for Ethos and $108 million for shareholders.
- The company offers life insurance software and is backed by notable investors like Sequoia and SoftBank.
- Ethos was valued at $2.7 billion in 2021 and raised $400 million, primarily that year.
- It has been profitable for years, generating nearly $278 million in revenue and $46.6 million in net income in the nine months ending September 30.
Why it matters
- The IPO comes as part of a resurgence in tech IPOs amid market recovery post-pandemic.
- In 2021, many tech companies experienced rapid valuation growth, similar to Ethos.
- The interest in tech IPOs is aligned with trends showing increased investment in fintech and insurtech.
- 2025 trends may emphasize profitability and sustainable business models, reflective of Ethos's history.
Ethos Technologies' upcoming IPO marks a significant milestone in the tech sector, reflecting investor interest in profitable startups despite previous valuation fluctuations, aligning with broader market trends towards sustainable growth.