Ethos is betting on predictive analytics and big data to shake up the legacy life insurance industry. And investors are lining up. On Tuesday, the insurtech startup announced it had raised $60 million in its Series C funding round led by Google Ventures, Goldman Sachs, and Sequoia Capital. That brings the total funding to date to more than $100 million. Speaking to Yahoo Finance's The Ticker, CEO and Co-Founder Peter Colis said the company would use the fresh funding to expand its team and build on its momentum.
The company isn't a well-known name in Silicon Valley, but its investors certainly are. San Francisco-based Ethos Technologies Inc. was founded last year, the product of two Stanford MBAs. The company's core product is a streamlined, and affordable process for buying term insurance -- which pays out benefits if the insured dies within a certain time frame. Ethos just raised $11.5 million in a round led by Silicon Valley luminary Sequoia Capital. Other investors in the round, however, were less predictable, including the venture fund of Jay Z's entertainment company Roc Nation, Robert Downey Jr.'s Downey Ventures, basketball star Kevin Durant's Durant Co. and Will Smith's Smith Family Circle.
Ethos, a company that's using predictive analytics and big data to issue life insurance policies, has raised $60 million in a series C round of funding led by Alphabet's venture capital (VC) arm GV, with participation from Sequoia Capital, Accel, and Goldman Sachs. An Ethos spokesperson told VentureBeat that it was valued at nearly $500 million at its latest funding round. The typical life insurance application process is a lengthy, time-consuming endeavor, involving reams of paperwork and medical exams -- and all this driven by commission-incentivized salespeople looking to shoehorn their client onto the most lucrative plan. Ethos is pitching itself as the antitheses of all this, with an application process it says takes a matter of minutes and requires no medical exams "for most applicants." The user answers some questions about their health and medical history, with Ethos verifying this against a person's medical and pharmaceutical records -- this data is "algorithmically analyzed to understand the assumed mortality for each individual," Ethos cofounder and CEO Peter Colis told VentureBeat.
San Francisco-based life insurance fintech startup Ethos has secured $60 million in Series C funding led by GV along with Goldman Sachs, Sequoia Capital, and Accel. The capital boost has brought Ethos' total funding to more than $100 million. The new capital follows the company's revenue and customer growth and will support its mission to make life insurance coverage accessible for millions of families in the US, it said in a statement. Ethos was reportedly found with an aim to provide everyone with an ethically designed, easy-to-understand and tailored term-life insurance policies. The company uses analytics and data technology to eliminate the traditional barriers, as a result, the application process takes a few minutes instead of weeks, according to the company.
Ethos, the Silicon Valley start-up taking on America's life insurance industry, just snagged $60 million in funding. The San Francisco-based company announced on Wednesday that it raised the fresh funds in a Series C round led by GV, Alphabet's venture arm, and backed by Goldman Sachs. Existing investors Sequoia Capital and Accel also invested; Ethos also counts Jay Z, Will Smith and Robert Downey Jr as backers. Ethos offers term insurance, which pays out benefits if the claimant dies within a length of time that typically ranges from 10 to 30 years. The company uses data analytics to predict a person's life expectancy, and claims the vast majority of its customers don't have to take a medical test to be eligible for coverage.