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Insurtech Bestow lands $120M Series D from Goldman Sachs, Smith Point Capital
Bestow, an insurtech company co-founded by Melbourne O'Banion in 2017, secured $120M in Series D funding led by Goldman Sachs and Smith Point Capital. Initially a direct-to-consumer life insurance provider, Bestow pivoted to a software model, helping other insurers modernize operations. The funding will support new product launches as Bestow's annual recurring revenue surged 3x in 2024.
Key points
- Bestow was co-founded in 2017 to simplify life insurance access.
- Their no-exam underwriting gained traction during COVID-19, allowing growth.
- Bestow pivoted from D2C to providing SaaS for other insurance companies.
- Raised $120M in Series D funding, comprising $75M primary and $45M secondary.
- Goldman Sachs and Smith Point Capital led the investment.
- Bestow's valuation roughly doubled since a $70M Series C in 2020.
- Annual recurring revenue grew 3x in 2024 and 10x over two years.
- Bestow has raised over $300M in total equity funding and has 167 employees.
Why it matters
- The insurtech sector is rapidly evolving with a focus on digital transformation.
- The shift to remote processes during the pandemic accelerated tech adoption in insurance.
- There is a growing trend toward SaaS models in various industries, including insurance.
- Bestow joins a movement of startups innovating in traditionally underserved markets, such as life insurance.
Bestow's significant funding underscores a vital shift in the insurance industry, emphasizing technological innovation and service efficiency, positioning the company for expanded influence in 2025's digital landscape.