Ethos valuation jumps to nearly $3 billion after SoftBank funding By Reuters


© Reuters. FILE PHOTO: SoftBank Corp’s logo is pictured at a news conference in Tokyo, Japan, February 4, 2021. REUTERS/Kim Kyung-Hoon/File Photo

(Reuters) – Online life insurance platform Ethos said on Wednesday it raised $100 million in a late-stage funding round from SoftBank Vision Fund 2, bringing its valuation to $2.7 billion.

Backed by the likes of rapper Jay-Z’s entertainment company Roc Nation and investment vehicles of Hollywood stars Will Smith and Robert Downey Jr, Ethos has received $400 million in funds so far, including proceeds from the current round.

Other investors in the company include venture capital firms Sequoia Capital, Accel, General Catalyst and GV, the venture capital arm of Google parent Alphabet (NASDAQ:) Inc.

The company had raised $200 million in its previous round two months ago that had lifted its valuation to $2 billion.

Ethos, a so-called insurtech company, allows customers to apply for whole-life and term-life insurance policies online and replaces medical exams with health questions to expedite the application and approval process, as per its website.

The company said it intends to “democratize” access to life insurance for a broader demographic of U.S. families, while adding that it works to include more women and more low- and middle-income families under the umbrella of coverage.

Firms like Ethos saw a huge uptick in demand during the COVID-19 pandemic, as insurance companies were forced to rely on technology to reach customers. It witnessed a more than six-fold increase in its revenue and customer base year-over-year.

The fast-growing sector has also attracted investor interest, with online homeowners insurance seller Hippo agreeing to go public through a $5 billion blank-check merger deal earlier this year.

San Francisco-headquartered Ethos also said it plans to double employee count by the end of the year expects to issue $20 billion in life insurance coverage in 2021.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link