- Ethos — a company that makes ethical life insurance — announced that it raised $60 million in Series C funding led by GV (formerly Google Ventures).
Ethos — a company that makes ethical life insurance — announced it raised $60 million in Series C funding led by GV (formerly Google Ventures). This round of funding follows major revenue and customer growth for the company and it supports Ethos’ mission to make life insurance coverage accessible for millions of families in the U.S.
Along with GV, Goldman Sachs is a new participant which joined existing investors Sequoia Capital and Accel. Including this round, Ethos has raised more than $100 million since being founded.
The traditional life insurance application model has not evolved much in the last 150 years. The historical application process is long, complex, and invasive process that often requires medical exams and weeks of paperwork. And the ubiquitous practice of employing commissioned insurance agents can mean agents are incentivized to make a sale rather than finding the policy that is right for the individual.
These outdated practices are one reason a massive coverage gap exists in the U.S. And 70% of Americans consider life insurance a necessity yet 41% have no coverage at all.
Ethos was founded on a radical idea that everyone deserves access to ethically designed and easy-to-understand term life insurance policies tailored to fit people’s lives. And Ethos is considered 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 rather than weeks. And no medical exams for most applicants, no commissioned agents, and a life insurance company that prioritizes people over profit.
“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 Ethos CEO and Co-Founder Peter Colis. “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.”
Colis founded Ethos with his former Stanford University grad school roommate Lingke Wang. And Crunchbase News pointed out that they previously founded secondary life insurance company Ovid.
This round of funding comes after significant growth of the company. For example, Ethos quadrupled revenue since October 2018 and announced several integral leadership hires such as David Zhang as VP – Finance & Strategy and Phil Murphy as VP of Insurance. Plus the company is also driving increased customer acquisition and is insuring thousands of new families.
And the funding round will also be used to fuel continued momentum, support product refinement, make technical team hires, and protect more families.
“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.”
