Ethos, a San Francisco-based life insurance startup, has launched out of stealth with $11.5M in financing.
The round was led by Sequoia Capital, with Stanford University, Arrive, a subsidiary of Roc Nation, Robert Downey Jr.’s Downey Ventures, Kevin Durant’s Durant Company, Will Smith’s Smith Family Circle, also participating. It has also landed a credit facility from Silicon Valley Bank. As part of the funding Sequoia Partner Roelof Botha will join the board of directors.
Ethos is co-founded by Peter Colis and Lingke Wang, who together previously co-founded Ovid Life, a life insurance marketplace.
Launched with a mission to simplify and modernise life insurance products through technology, the startup is already licensed in 49 states and has processed thousands of applicants for life insurance coverage.
“Ten million new individual life policies are sold annually in the U.S., and Peter and Lingke have identified the opportunity to modernise their delivery and packaging for the next generation,” said Botha. “Ethos is revolutionizing the insurance purchasing experience and we’re thrilled to partner with them as they create a simple way for consumers to provide for the people they love.”
Ethos claims to provide a fast, easy and inexpensive process of getting a life insurance policy. It uses the power of technology and predictive analytics to modernise the life insurance process and align products with what families want and need during critical times in their lives.
It claims most people can apply and qualify for a policy after a ten-minute application versus the ten weeks it takes through a more traditional process. There is always a non-commissioned licensed agent available to give unbiased guidance.
Colis added: “We have the opportunity to rebuild a broken industry and put honesty at its core, ultimately expanding life insurance accessibility to the millions of US families who have college debt, mortgages, spouses and children to care for, and who want to be financially empowered to live their lives without worry. We are proud to partner with Sequoia and our other investors on this mission.”
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