Bestow Secures $120 Million in Oversubscribed Series D Funding

Bestow Inc., a prominent player in the insurance technology sector, has successfully completed a $120 million oversubscribed Series D funding round. This round was co-led by Growth Equity at Goldman Sachs Alternatives alongside Smith Point Capital, highlighting the industry's confidence in Bestow's vision and growth potential. The funding also included a substantial $50 million credit facility from TriplePoint Capital, aimed at supporting the company's ambitious expansion plans.

In the past year, Bestow has recorded remarkable growth, tripling its revenue and achieving a tenfold increase in sales over two years. With this new capital influx, the company is set not only to innovate its product lineup but also to significantly expand its workforce to cater to rising demand from enterprises in the life insurance and annuities market.

Melbourne O'Banion, Bestow's CEO and co-founder, expressed gratitude for the support from investors and emphasized that this investment reinforces Bestow's role as a vital partner for life insurance organizations looking to modernize their operations. He stated, "We are accelerating product innovation to help the industry stay ahead of market trends and unlock new opportunities through technology."

Joining Bestow’s board is Ashwin Gupta, Managing Director at Goldman Sachs, who stated, "The modern insurance technology platform that Bestow has developed is pivotal for advancing the industry. Our investment aims to enhance their capabilities as they drive innovation forward."

Keith Block, the Founder and CEO of Smith Point Capital, also noted the significance of this funding, suggesting that Bestow is altering how insurers function at a fundamental level. His firm believes in Bestow’s potential to reshape the industry landscape at a time when innovation in life insurance has been stagnant for decades.

Bestow shifted strategies in 2024 following the divestiture of Bestow Life Insurance Company to Sammons Financial Group, opting to focus primarily on enterprise solutions through its specialized software platform. Following this pivot, Bestow has successfully partnered with industry leaders such as Nationwide, Transamerica, and USAA, boasting an impressive 100% customer retention rate and a staggering 245% year-over-year increase in transaction volume.

The company’s ability to transport life insurance processes into an era defined by efficiency and technological advancement marks a significant milestone in an industry traditionally resistant to change. With the Series D funding, Bestow aims to propel its already rapid growth trajectory further, ultimately seeking to establish itself as a premiere choice for life insurance providers in a time of innovation.

As Bestow continues its upward trajectory, it remains committed to defining the future of insurance technology. Through their comprehensive platform, the company is not just enhancing operational efficiencies but also aiming to redefine customer experiences across the board. As we look to the months ahead, additional partnership announcements are expected, promising an exciting future for Bestow and its stakeholders.

To learn more about how Bestow is innovating the insurance space, visit their website at Bestow.com.