Ethos Technologies, once one of Silicon Valley’s hottest insurance technology startups, is preparing to make its public market debut, positioning itself as one of the first technology companies to launch an initial public offering this year.

The company has already priced its IPO and is expected to begin trading on Thursday, marking a closely watched test of investor appetite for tech listings after a prolonged slowdown.

The life insurance software provider is targeting a price range of $18 to $20 per share. At the top end of that range, Ethos would enter the market with a valuation of about $1.26 billion.

The offering is expected to raise approximately $102.6 million for the company, with an additional $108 million going to existing shareholders. Strong demand could still push the final pricing higher, potentially boosting both valuation and proceeds.

Ethos counts some of the most prominent names in venture capital among its backers, including Sequoia Capital, Accel, General Catalyst, SoftBank, Heroic Ventures, and Alphabet’s venture arm, GV.

According to disclosures, Sequoia and Accel are not selling any shares in the IPO, signaling continued confidence in the company’s long-term prospects.

The startup was a standout performer during the pre-artificial intelligence funding boom, attracting significant investor interest through 2021.

During its early growth years, Ethos also drew backing from several high-profile family offices linked to celebrities such as Will Smith, Robert Downey Jr., Kevin Durant, and Jay-Z.

By 2021, the company had reached a peak valuation of $2.7 billion after raising roughly $400 million, most of it in that same year.

Unlike many venture-backed peers now turning to public markets, Ethos enters its IPO as a profitable business.

Company filings show that in the nine months ending September 30, Ethos generated nearly $278 million in revenue and reported net income of just under $46.6 million.

That financial performance could help distinguish the company as investors reassess fundamentals in the current IPO landscape.

Source: Techcrunch