Bestow, an insurtech startup co-founded by Melbourne O’Banion and Jonathan Abelmann in 2017, has secured $120 million in Series D funding to fuel its next phase of growth. The funding round was led by Goldman Sachs Alternatives’ Growth Equity and Keith Block’s Smith Point Capital, with participation from other backers such as Breyer Capital, Valar Ventures, and New Enterprise Associates.
Initially, Bestow sought to make it easier for individuals to access life insurance. O’Banion, having struggled to secure his own life insurance policy, aimed to streamline the process using modern technology. Bestow’s initial business model was direct-to-consumer (D2C), selling, underwriting, and servicing life insurance policies. It gained significant traction during the COVID-19 pandemic when its no-exam underwriting platform became more popular due to traditional medical exams being temporarily suspended.
In 2024, Bestow shifted its focus from being a direct insurer to offering its technology as an enterprise solution. The company sold its insurance carrier and consumer business to Sammons Financial Group, transitioning to a software-as-a-service (SaaS) model. This pivot allowed Bestow to focus on helping other life insurance companies modernize and optimize their services.
With the $120 million in Series D funding, Bestow plans to expand its product offerings and improve its underwriting capabilities. The funding consists of $75 million in primary and $45 million in secondary investments. The company also secured a $50 million credit facility from TriplePoint Capital. Bestow has raised over $300 million in equity funding to date.
O’Banion mentioned that Bestow’s valuation had “approximately doubled” since its last funding round in December 2020, but declined to share specific revenue figures. However, it was reported that Bestow’s annual recurring revenue grew 3x in 2024 and 10x over the last two years.
Goldman Sachs’ Ashwin Gupta, who is joining Bestow’s board as part of the financing, praised the company’s founders for their successful pivot and SaaS model. He noted that Bestow’s ability to secure large customers like Nationwide, Transamerica, USAA, and Equitable highlights the potential for long-term success in the underserved life insurance market.
Bestow, which currently operates in the U.S., has 167 employees and is considering international expansion in the near future.
Also Read : Google Launches AI Futures Fund to Support Startups Building with DeepMind Tools
