▼ Summary
– Melbourne O’Banion co-founded Bestow in 2017 to simplify and digitize the life insurance application process after facing personal challenges securing a policy.
– Bestow initially sold direct-to-consumer life insurance, processing over a million applications, and gained traction during COVID when traditional medical exams were paused.
– In 2024, Bestow sold its insurance carrier and consumer business to Sammons Financial Group to focus on providing software to modernize other life insurance companies.
– Bestow raised $120 million in Series D funding, including $75 million in primary and $45 million in secondary investments, to launch new products and underwriting capabilities.
– The company’s SaaS-based revenue model has grown significantly, with annual recurring revenue increasing 3x in 2024 and 10x over two years, serving major clients like Nationwide and USAA.
Bestow, the Dallas-based insurtech company, has secured $120 million in Series D funding to accelerate its mission of transforming the life insurance industry through digital innovation. The round was co-led by Goldman Sachs Alternatives’ Growth Equity and Smith Point Capital, the investment firm founded by former Salesforce co-CEO Keith Block. This latest injection of capital brings Bestow’s total equity funding to over $300 million, reinforcing its position as a leader in modernizing life insurance underwriting and distribution.
Founded in 2017 by Melbourne O’Banion and Jonathan Abelmann, Bestow initially focused on direct-to-consumer life insurance, leveraging its no-exam underwriting platform to streamline applications. The company gained momentum during the pandemic when traditional medical exams became difficult to conduct. Over time, Bestow shifted its strategy, selling its insurance carrier business to Sammons Financial Group earlier this year to concentrate on enterprise SaaS solutions for insurers.
The new funding will fuel product development and expand underwriting capabilities, helping insurers digitize their operations. Goldman Sachs’ Ashwin Gupta, who joins Bestow’s board, highlighted the company’s scalable SaaS model and impressive customer roster—including Nationwide, Transamerica, and USAA—as key factors in the investment. Bestow’s revenue model combines subscription-based fees with performance incentives, with annual recurring revenue growing 10x in the past two years.
In addition to the equity raise, Bestow secured a $50 million credit facility from TriplePoint Capital, providing further financial flexibility. While the company hasn’t disclosed its valuation, O’Banion noted it has roughly doubled since its $70 million Series C in 2020. With 167 employees and a strong U.S. presence, Bestow is now exploring international expansion to bring its technology to global markets.
Other investors in the round include Breyer Capital, Valar Ventures, and New Enterprise Associates, signaling strong confidence in Bestow’s ability to reshape an industry long overdue for digital transformation.
(Source: TechCrunch)
