Form 4: Accel Growth Fund Converts Ethos Preferred Stock to Class B Common

Accel Growth Fund entities converted preferred shares into Class A common stock and then exchanged them for Class B common stock in Ethos Technologies Inc. following the company's IPO.

Summary

• Accel Growth Fund IV L.P. and its related entities (Accel Growth Fund Investors 2016 L.L.C., Accel Growth Fund IV Strategic Partners L.P., and Accel Growth Fund IV Associates L.L.C.) reported changes in their beneficial ownership of Ethos Technologies Inc.
• Upon the closing of Ethos Technologies Inc.'s Initial Public Offering (IPO), all Series B, Series C, and Series D Preferred Stock held by these entities automatically converted into Class A Common Stock.
• Immediately following this conversion, the newly acquired Class A Common Stock was exchanged on a 1:1 ratio for Class B Common Stock.
• Accel Growth Fund IV L.P. directly converted 5,602,701 Series B, 988,276 Series C, and 189,998 Series D Preferred Stock into Class A Common Stock, and subsequently exchanged 6,780,975 Class A Common Stock for Class B Common Stock.
• Accel Growth Fund Investors 2016 L.L.C. indirectly converted 267,983 Series B, 47,268 Series C, and 9,087 Series D Preferred Stock, and exchanged 324,338 Class A Common Stock for Class B Common Stock.
• Accel Growth Fund IV L.P. Strategic Partners L.P. indirectly converted 31,871 Series B, 5,622 Series C, and 1,080 Series D Preferred Stock, and exchanged 38,573 Class A Common Stock for Class B Common Stock.
• Each share of Class B Common Stock is convertible into one share of Class A Common Stock at the holder's option.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, representing a pre-planned structural change in ownership for a major investor following the company's IPO, rather than a discretionary investment decision.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that such conversions and exchanges are common occurrences following an IPO, especially for early-stage investors like venture capital funds, as they transition from preferred equity to publicly traded common stock, often with different voting rights or conversion features.

Related Party Transactions

• The transactions involve Accel Growth Fund entities, which are 10% owners and have a director relationship with Ethos Technologies Inc., making these related-party transactions in terms of ownership structure changes.

Stakeholder Impact

• The conversion and exchange of shares by a significant institutional investor like Accel Growth Fund clarifies the ownership structure post-IPO, transitioning preferred stock to common stock with specific voting rights (Class B), which can impact the distribution of voting power among shareholders.

Key Dates

Keywords

Ethos Technologies Inc., LIFE, Accel Growth Fund, Form 4, Beneficial Ownership, Insider Transaction, Preferred Stock Conversion, Class A Common Stock, Class B Common Stock, IPO, Equity Exchange