Ethos, a start-up that says it can process life insurance applications in a matter of minutes, has raised $35 million in a funding round led by Accel and backed by Google’s venture capital arm.
The latest investment raises the San Francisco-based company’s total funding to over $46 million, and CNBC understands the firm is now valued at more than $100 million.
The deal, which marks Ethos’ second major round of investment, sees Accel Partner Nate Niparko join the firm’s board of directors, while Google Ventures General Partner Tyson Clark will act as an advisor to the board.
Existing investors Sequoia Capital and Arrive, the venture fund of U.S. rapper Jay Z’s entertainment firm Roc Nation, also participated in the funding round.
“The insurance sector is a $1 trillion industry that is still largely dependent on pen and paper, pushy salespeople, doctor office visits, and legacy systems, which is why we believe there is a tremendous opportunity to simplify the process through technology â€” and that’s exactly what Ethos has built,” Accel’s Niparko told CNBC in an email.
He highlighted other bets the firm has made on insurance technology start-ups like Shift Technology, which uses artificial intelligence to detect fraudulent insurance claims, and The Zebra, a car insurance marketplace.
“We believe that Ethos is the first player in the life insurance space that’s truly poised to make a difference in how Americans purchase and interact with their insurance provider,” Niparko added.