Ethos Bags $100 Million from SoftBank Vision Fund 2
Ethos, which is a leading insurtech leader, has raised $100 million in capital. The new investment from SoftBank Vision Fund 2 brings Ethos' valuation to $2.7 billion and total funds raised to $400 million. SoftBank joins an all-star cast of investors including Sequoia Capital, Accel, GV (formerly Google Ventures), General Catalyst, Jay-Z's Roc Nation, and the investment vehicles of stars Will Smith and Robert Downey Jr.
With new offices in Austin, TX and Singapore, offerings in 49 states, and a goal of doubling its employee count by 2021 year end, Ethos has been growing at a significant rate and increasing its year over year momentum. Revenue and users have each grown by more than 500 per cent year over year, and the company expects to issue $20 billion of life insurance coverage in 2021, surpassing all competitors. In addition to its revenue and user growth, the company is nearing $100 million in annualized gross profit.
"Everyone should have an opportunity to protect their families," Peter Colis, Ethos CEO and Co-Founder, said
According to a recent study by LIMRA and Life Happens, just 58 per cent of men and 47 per cent of women have life insurance, and despite a spike in sales during the pandemic, there are 102 million uninsured and underinsured Americans. That amounts to 40 per cent of the adult population who believe they need to buy life insurance or increase their coverage. Ethos uses innovative machine learning and data science technologies to increase the addressable market for life insurance. Its technology advantage breaks down barriers that prevent customers from purchasing life insurance, including underwriting in minutes with no medical exams, blood tests or complex paperwork.
"In the last six months we have insured more truck drivers and current members of the military than we have attorneys," Colis noted.
As the world's biggest private technology investor, the SoftBank Vision Funds have invested more than $3 billion in insurtech companies around the globe. The company backed China's largest online insurer ZhongAn as well as PolicyBazaar, India's biggest online insurance distributor. In addition, parent company Softbank Group is an investor in Lemonade.
"Ethos is leveraging data and its vertically integrated tech stack to fundamentally transform life insurance in the U.S. Through a fast and user-friendly online application process, the company can accurately underwrite and insure a broad segment of customers quickly. We are excited to partner with Peter Colis and the exceptional team at Ethos," Munish Varma, Managing Partner at SoftBank Investment Advisers, said
Ethos is a new kind of life insurance provider that makes getting coverage easy and accessible for millions of families. It uses deep technology and data science to eliminate traditional barriers to life insurance and bring the industry into the modern age. It built its technology from the ground up with a focus on creating a seamless customer experience; a mobile-first, online application process that takes minutes instead of weeks, and offering coverage without a medical exam for over 99 per cent of applicants and a few health questions. The result is a life insurance provider that puts people first.
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