Form 4: Sequoia Capital Entities Convert Preferred Stock to Class B Common in Ethos IPO

Sequoia Capital-affiliated entities converted various preferred stock series into Class A Common Stock, then exchanged them for Class B Common Stock following Ethos Technologies Inc.'s IPO.

Summary

• Reporting persons, including SC US (TTGP), LTD. and several Sequoia Capital funds, are directors and 10% owners of Ethos Technologies Inc.
• Upon the closing of Ethos Technologies Inc.'s IPO, various series of Preferred Stock (Series A-2, A, B, C, and D) held by these entities, totaling 12,000,124 shares, automatically converted into Class A Common Stock.
• Immediately following this conversion, 11,900,124 shares of Class A Common Stock were exchanged at a 1:1 ratio for 11,900,124 shares of Class B Common Stock.
• These transactions occurred on January 30, 2026, with a reported price of $0, indicating a conversion and exchange rather than a market purchase or sale.
• Each share of Class B Common Stock is convertible at the option of the holder into one share of Class A Common Stock.
• Following these transactions, the reporting entities beneficially own 11,900,124 shares of Class B Common Stock and no longer hold the reported preferred stock or the Class A Common Stock that was exchanged.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, representing a procedural restructuring of equity holdings by a major investor post-IPO, rather than a direct positive or negative signal about the company's performance or valuation.

Positives

• The conversion and exchange streamline the capital structure for these significant investors post-IPO.
• The acquisition of Class B Common Stock provides holders with specific voting rights or other features associated with Class B shares, while maintaining convertibility to Class A.

Industry Context

StockSavvy.ai notes that such conversions and exchanges are standard procedural steps for venture capital investors like Sequoia Capital following a portfolio company's initial public offering, allowing them to adjust their equity holdings to the public market capital structure, often to maintain certain control or voting rights through multi-class share structures.

Comparison to Industry Standards

• StockSavvy.ai observes that the conversion of preferred stock to common stock and subsequent exchange for a different class of common stock (e.g., Class B with potentially different voting rights) is a common practice for venture capital firms like Sequoia Capital when their portfolio companies go public. This allows them to manage their investment structure and governance post-IPO, similar to how firms like Andreessen Horowitz or Lightspeed Venture Partners might restructure their holdings in newly public companies.

Corporate Governance

Related Party Transactions

• The reporting persons are investment funds affiliated with Sequoia Capital, which are 10% owners and have a director on the board of Ethos Technologies Inc.
• The transactions involve the conversion and exchange of shares held by these affiliated entities, representing a restructuring of their investment in the company post-IPO.

Stakeholder Impact

• Shareholders: The conversion and exchange clarify the ownership structure of a major institutional investor, potentially impacting the distribution of voting power between Class A and Class B common shareholders.
• Company: Simplifies the capital structure by eliminating preferred stock, moving to a dual-class common stock structure for these specific holdings.

Key Dates

Keywords

Ethos Technologies, LIFE, SEC Form 4, Beneficial Ownership, Sequoia Capital, Preferred Stock Conversion, Class A Common Stock, Class B Common Stock, IPO, Insider Transaction, Capital Structure