Bestow Secures $120M Series D to Power Life Insurance SaaS Platform
Dallas-based insurtech company Bestow has announced a $120 million Series D funding round. The round, co-led by Goldman Sachs Asset Management’s Growth Equity business within Goldman Sachs Asset Management and Smith Point Capital (founded by former Salesforce co-CEO Keith Block), includes $75 million in primary capital and $45 million in secondary investments. Bestow also secured a $50 million credit facility from TriplePoint Capital.
From D2C to SaaS: A Strategic Pivot
Founded in 2017, Bestow initially operated as a direct-to-consumer life insurance provider. After processing over a million applications and witnessing increased demand for its no-exam underwriting platform during the COVID-19 pandemic, Bestow shifted its focus. In 2024, the company sold its consumer business to Sammons Financial Group to concentrate on providing its software and services to other life insurance companies. This SaaS platform empowers insurers to digitize their operations and enhance customer service.
Funding Fuels Growth and Innovation
This latest funding round, described as "oversubscribed" by CEO Melbourne O'Banion, will enable Bestow to launch new products and expand its underwriting capabilities. While declining to disclose the company's valuation, O'Banion stated it has "approximately doubled" since its $70 million Series C in 2020. He also reported a 3x increase in annual recurring revenue in 2024 and a 10x increase over the past two years. Bestow's revenue model is primarily based on usage fees.
Bestow has an attractive end market that is large, resilient and relatively underserved by modern technology.
This quote from Ashwin Gupta, a Goldman Sachs Asset Management’s Growth Equity team partner and new Bestow board member, highlights the market opportunity Bestow addresses. Gupta also cited the founders' successful pivot and the company's impressive client roster as key investment drivers.
Serving Major Insurance Providers
Bestow's customer base includes prominent names like Nationwide, Transamerica, USAA, Sammons Financial Group, and Equitable. With 167 employees, the company currently operates in the U.S. and is exploring international expansion.
This latest investment brings Bestow's total equity funding to over $300 million. The company is poised for continued growth as it empowers the digital transformation of the life insurance industry.
