In a bold step forward, Dallas-based insurtech Bestow has closed a $120 million Series D round, propelling its mission to modernize life insurance through software. The funding, which includes $75 million in primary capital and $45 million in secondary sales, was co-led by Goldman Sachs Alternatives’ Growth Equity and Smith Point Capital, the private equity firm of ex-Salesforce co-CEO Keith Block.
Bestow also secured an additional $50 million credit facility from TriplePoint Capital, providing more fuel for product innovation and the expansion of its digital underwriting capabilities.
Founded in 2017 by Melbourne O’Banion and Jonathan Abelmann, Bestow was born out of personal frustration with the complexities of securing life insurance. Initially a direct-to-consumer (D2C) insurance provider, the company gained early traction with a no-exam underwriting platform—especially during the pandemic when traditional processes were disrupted. Over its D2C phase, Bestow processed more than a million applications.
But in 2024, Bestow made a decisive pivot. The company exited its insurance carrier and consumer operations, selling them to Sammons Financial Group, and repositioned itself solely as an enterprise software provider. Now focused on offering its digital underwriting and policy management platform to insurers, Bestow aims to help legacy players accelerate their digital transformation journeys.
“Our focus is helping insurers become digital insurers,” CEO Melbourne O’Banion shared. He noted that Bestow’s annual recurring revenue tripled in 2024 and grew tenfold over the past two years—though specific figures remain undisclosed. Bestow’s business model is now firmly SaaS-based, with usage fees comprising the bulk of its revenues.
Investors are bullish on the company’s pivot to enterprise software. Goldman Sachs’ Ashwin Gupta, who is joining Bestow’s board, emphasized the attractiveness of its SaaS model in an industry still underserved by modern technology. He also pointed to Bestow’s ability to land and expand relationships with major insurers, including Nationwide, Transamerica, USAA, Sammons Financial, and Equitable.
Bestow’s latest raise brings its total equity funding to over $300 million. Backers also include Breyer Capital, Valar Ventures, New Enterprise Associates, Core Innovation Ventures, Morpheus Ventures, and Sammons Financial.
With a 167-person team, Bestow currently serves the U.S. market but has its sights set on international expansion as it looks to scale its platform globally.