SoftBank joins Hollywood A-listers in backing fast-growing insurtech with $2.7bn valuation
A US-based insurtech on a mission to transform the life insurance market has secured its latest investment from Japanese investor SoftBank at a valuation of $2.7 billion. The funding comes on the heels of its rapid growth and Series D round that saw 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.
Ethos has raised an additional $100 million in capital from SoftBank Vision Fund 2, following its $200 million Series D round in May, bringing its total funds raised to $400 million.
The insurtech is said to be "growing at a significant rate" — its revenue and users have each grown by more than 500 percent 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 annualised gross profit.
Ethos has launched its new offices in Austin, Texas and Singapore, offerings in 49 states. The company said it aims to double its employee count by 2021 year end.
As a leading 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 online insurance distributor. In addition, parent company Softbank Group is an investor in Lemonade.
Peter Colis (pictured), Ethos CEO and co-founder, said: "Our goal isn't just to offer the best insurance customer experience ever created, but to offer it to everyone. Even at this early stage we've demonstrated that our technology can do this with life insurance. We're excited to apply our technology and data platform in new ways to expand that safety net even further."
Munish Varma, managing partner at SoftBank Investment Advisers, said: " 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."
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