Ethos, an insurance technology startup, is exploring an initial public offering that could take place as soon as this year, Bloomberg reported, citing people familiar with the matter.
The company has tapped Goldman Sachs Group Inc. to advise on the potential listing, though no final decision has been made.
The Austin-based firm was last valued at $2.7 billion in a funding round led by SoftBank Vision Fund 2 in July 2021. Representatives for Ethos and Goldman Sachs declined to comment, according to the report.
Led by co-founder and CEO Peter Colis, Ethos reported 50% year-over-year revenue growth in 2024 but did not disclose further details. The company, which offers life insurance policies of up to $3 million without requiring a medical exam, promotes a streamlined approval process that takes about 10 minutes, according to its website.
Ethos is backed by investors including SoftBank, General Catalyst, Sequoia Capital, Accel, Roc Nation, and Glade Brook Capital Partners. Its potential IPO comes as the U.S. public listing market shows signs of recovery following a slowdown in recent years.
In 2024, 150 companies raised a combined $29.6 billion through IPOs, a more than 50% increase in proceeds from the previous year, though still below historical averages.
The healthcare and technology sectors accounted for the majority of activity, representing 61% of deals and 49% of total proceeds for offerings that raised at least $50 million. AI-focused firms, in particular, drew heightened investor interest.
The fourth quarter of 2024 saw a surge in IPO proceeds, doubling from the same period in 2023. A single $1.7 billion listing made up 30% of the quarter’s total proceeds. Meanwhile, IPOs raising at least $50 million recorded an average 30% aftermarket gain.
Momentum has continued into 2025, with 57 IPO filings so far, a 21% increase from the prior year. Upcoming public offerings include cloud computing firm CoreWeave, expected to raise $2.5 billion at a $29 billion valuation, and online ticket marketplace StubHub, which has reported a 29.5% revenue increase in its IPO filing.
If Ethos proceeds with a public debut, it would add to the growing number of tech firms testing investor appetite in a rebounding IPO market.
