Bestow, a life insurance technology company founded in 2017 by Melbourne O’Banion and Jonathan Abelmann, recently announced its successful completion of a $120 million Series D funding round. Goldman Sachs Alternatives, Growth Equity team member Ashwin Gupta led the investment. It was made up of $75 million in lead funding and $45 million add-on investments. Gupta, along with members of Future Fit’s investment team, will join Bestow’s board as part of the financing agreement.
Bestow too has found a revenue model that relies heavily on enterprise SaaS (software-as-a-service) and performance-based (pay for outcome) metrics. This data driven model gives the tech driven company a competitive edge toward legacy insurance companies, which in many cases are bogged down by outdated infrastructure. Bestow therefore has a very high-value traction in the market. During their short time to date of being fully operational in the United States, they have vetted more than one million applications.
The newly acquired funding will enable Bestow to launch new products and enhance its underwriting capabilities, positioning the company for future growth. The funding round was oversubscribed demonstrating investor excitement around Bestow’s fresh approach to life insurance.
“Bestow has an attractive end market that is large, resilient and relatively underserved by modern technology…” – Ashwin Gupta
Bestow is continuing to enhance and expand our product evolution. It has been looking at international expansion efforts as a means to diversify its market presence. The company has won and retained multiple major global clients. These clients have increased their adoption of the platform, which is a testament to their faith in Bestow’s technology and customer service.
And with a growing workforce of 167 employees, Bestow is better prepared than most for whatever challenges may await its expansion. The founders’ personal experiences, particularly O’Banion’s struggles with obtaining life insurance, underscore their commitment to making the insurance process more accessible and efficient for consumers.
Already, Bestow is racing forward with its audacious plans. The company’s long-term strategy is to strengthen its leadership position in the fast-paced insurtech sector, while constantly innovating and improving the customer experience along the way.
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