SAN FRANCISCO, August 27, 2019
— Ethos, the company making simple, ethical life insurance, today
announced it raised a $60 million Series C financing led by GV (formerly
Google Ventures). This financing follows major revenue and customer
growth, and supports Ethos’ mission to make life insurance coverage
accessible for millions of families in the U.S. In addition to GV,
Goldman Sachs is a new participant alongside existing investors Sequoia
Capital and Accel, bringing the total funding to-date to more than $100
million.
The traditional life insurance application model hasn’t
meaningfully evolved in 150 years. The historical application process is
long, complex, and invasive – often requiring medical exams and weeks
of paperwork. The ubiquitous practice of employing commissioned
insurance agents can mean agents are incentivized to make a sale, not to
find the policy that is right for the individual. Incentives are
fundamentally misaligned. These outdated practices are one reason a
massive coverage gap exists in the U.S. Seventy percent of Americans consider life insurance a necessity, yet 41 percent have no coverage at all.
Ethos was founded on the radical idea that everyone deserves access to ethically designed, easy-to-understand term life insurance
policies tailored to fit people’s lives. Ethos is a pioneer in using
predictive analytics and sophisticated data technologies to eliminate
the traditional barriers keeping people from getting coverage. The
result is an application process that takes minutes instead of weeks, no
medical exams for most applicants, no commissioned agents, and a life
insurance company that prioritizes people over profit.
“Since our
original investment in Ethos last year, we’ve been consistently
impressed by the company’s commitment to growth, customer traction, and
execution to date,” said Tyson Clark, General Partner at GV. “With the
company’s product differentiation and singular approach to modern life
insurance, Ethos is well-positioned to disrupt a $100+ billion
industry.”
This latest round of financing comes after significant
company growth. Ethos has quadrupled revenue since October 2018 and
announced several integral leadership hires, including Head of Finance
David Zhang and VP of Insurance Phil Murphy. The company is also driving
increased customer acquisition, insuring thousands of new families. The
Series C funding will fuel continued momentum, supporting product
refinement, technical team hires, and ultimately, the ability to protect
more families.
“Getting life insurance is one of the most
selfless financial choices someone can make. You shouldn’t have to
endure what’s essentially a medical and financial strip search in order
to protect your family,” said Peter Colis, Ethos CEO and Co-Founder.
"What makes Ethos different from other providers is our core values are
aligned with the expectations of American families: life insurance
should be easy and ethical. We aren't motivated by capitalizing on
individuals. Instead, we make choices like right-sizing policies for
customers, so they have the best coverage for their families without
ever paying more than they should.”
ABOUT ETHOS
Ethos
is a new kind of life insurance, designed to give millions of families
access to ethical, modern coverage. Ethos uses predictive analytics and
sophisticated data technology to eliminate traditional barriers to life
insurance. The application process takes minutes instead of weeks, there
no medical exams for most applicants, and no commissioned agents. The
result is a life insurance company that prioritizes people over profit.
Ethos is backed by GV (formerly Google Ventures), Sequoia Capital,
Accel, Goldman Sachs, Stanford University and Arrive, a subsidiary of
Roc Nation. The company is headquartered in San Francisco. To learn
more, visit www.ethoslife.com.
Source. Ethos, News Release, August 27, 2019
Source. Ethos, News Release, August 27, 2019
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