Latest news with #MelbourneO'Banion
Associated Press
13-05-2025
- Business
- Associated Press
Bestow Closes $120 Million Oversubscribed Series D Funding, Co-Led by Growth Equity at Goldman Sachs Alternatives and Smith Point Capital
Bestow tripled revenue in 2024, achieved 10x growth over two years, and expects to continue growing exponentially, with profitability on the horizon DALLAS, May 13, 2025 /PRNewswire/ -- Bestow Inc., a leading insurance technology company, today announced the close of a $120 million oversubscribed Series D funding round, including primary and secondary investments. The round was co-led by Growth Equity at Goldman Sachs Alternatives and Smith Point Capital. In addition to the equity financing, Bestow also secured a $50 million credit facility from TriplePoint Capital. The capital will fund the development of new products and services and help accelerate the expansion of Bestow's platform in the life and annuities space. Bestow plans to increase its workforce to meet growing enterprise demand. 'This investment strengthens Bestow's position as the preferred partner for life insurance and annuity providers seeking to modernize and scale,' said Melbourne O'Banion, CEO and Co-founder of Bestow. 'We are accelerating product innovation to help the industry stay ahead of market trends, unlock new opportunities, and build lasting competitive advantages through technology. We are deeply grateful to our investors and carrier partners for their support and shared belief in our mission to modernize the life insurance and annuities space.' As part of the investment, Ashwin Gupta, Managing Director at Goldman Sachs, will join Bestow's board of directors. 'There is a growing need for a modern insurance technology platform that enables better solutions and outcomes for life and annuity carriers,' said Gupta. 'We believe Bestow has developed such a platform and is driving innovation in the industry. We are excited to invest in Bestow as they continue to expand their capabilities and reimagine the future of insurance technology.' 'The life insurance industry has remained virtually untouched by innovation for three decades,' said Keith Block, Founder and CEO of Smith Point Capital. 'Bestow isn't just offering another tech tool—they're fundamentally transforming how insurers create and deliver products at the very core of their business operations. Their impressive enterprise customer roster, unprecedented for such a young company in this traditionally risk-averse market, demonstrates that Bestow has identified a truly mission-critical opportunity. Smith Point Capital is incredibly proud to not only invest in Bestow to help them accelerate their growth, but also partner with them as they redefine the industry.' This funding milestone follows Bestow's 2024 divestiture of Bestow Life Insurance Company, a direct-to-consumer life insurance carrier, to Sammons Financial Group, marking a strategic shift to focus exclusively on enterprises through its vertical software platform, purpose-built for the entire life insurance value chain. Today, Bestow partners with industry leaders, including Nationwide, Transamerica, USAA, Sammons Financial Groups, among others, and will be announcing additional partners in the coming months. The company continues to boast a 100% customer retention rate and has achieved a 245% year-over-year increase in transaction volume. The Series D round caps a period of strong growth for Bestow, and the company expects this growth to continue exponentially. About Bestow Bestow built the leading end-to-end platform for life insurers to drive efficiency, reduce costs, and enhance profitability across the entire value chain. From product development and advanced underwriting to seamless policy administration, our solutions enable carriers to deliver exceptional products and experiences to agents and customers. Discover how Bestow is shaping the future of insurance at About Growth Equity at Goldman Sachs Alternatives Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $500 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, sustainability, and hedge funds. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs. The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets. The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world's leading institutions, financial advisors and individuals. Goldman Sachs has more than $3.1 trillion in assets under supervision globally as of December 31, 2024. Since 2003, Growth Equity at Goldman Sachs Alternatives has invested over $13 billion in companies led by visionary founders and CEOs. The team focuses on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare. About Smith Point Capital Smith Point Capital Management, LLC is a venture capital firm redefining growth equity for the intelligent enterprise. We invest in mission-critical enterprise software at the convergence of data, AI, edge computing, and precision applications. Our operator-led approach combines Fortune 500 executive experience with deep investment expertise, providing both hands-on operational support and strategic capital to help companies accelerate growth and maximize market impact. For more information, visit ### View original content to download multimedia: SOURCE Bestow Inc.
TechCrunch
13-05-2025
- Business
- TechCrunch
Insurtech Bestow lands $120M Series D from Goldman Sachs, Smith Point Capital
Melbourne O'Banion co-founded insurtech Bestow with Jonathan Abelmann in 2017 after struggling to secure his own life insurance policy. His goal was to make it easier for people to obtain life insurance and make the process more tech-enabled. Initially, Bestow operated as a direct-to-consumer insurance provider — selling, underwriting, and servicing life insurance policies. In those first few years, the startup processed over a million applications. Its no-exam underwriting platform gained traction during the COVID pandemic as traditional medical exams were paused. As it grew its D2C business, Bestow in parallel developed software to help modernize the whole process. Recognizing the value in that software, Bestow in 2024 sold its insurance carrier and consumer business to Sammons Financial Group for an undisclosed amount. It switched its focus to providing its software and services to other life insurance companies so those companies could 'become more digital' and thus, more efficiently serve their customers. And on Tuesday, the Dallas-based company is announcing that it has raised $120 million in Series D funding to launch new products and underwriting capabilities, it has told TechCrunch exclusively. The fundraise, which O'Banion described as 'oversubscribed,' was a mix of $75 million in primary and $45 million in secondary investments. Goldman Sachs Alternatives' Growth Equity and ex-Salesforce co-CEO Keith Block's Smith Point Capital co-led the investment. In addition to the equity financing, Bestow also secured a $50 million credit facility from TriplePoint Capital. O'Banion declined to reveal Bestow's valuation, noting only that it had 'approximately doubled' since the company raised $70 million in a Series C round in December 2020. With this latest financing, Bestow has raised more than $300 million in equity funding to date. O'Banion also declined to reveal hard revenue figures, saying that Bestow's annual recurring revenue grew 3x in 2024, and '10x' over the last two years. Its revenue model is enterprise SaaS (software-as-a-service) and performance-based. The bulk of its revenue comes from usage fees. Ashwin Gupta, a Goldman Sachs Alternatives' Growth Equity team partner, told TechCrunch that he was attracted to backing Bestow for several reasons. For one, its founders were repeat founders who had 'successfully pivoted the business.' (Melbourne also co-founded BeautyBio and is a founding member of Presidio Title. Abelmann co-founded publicly traded Invitation Homes.) Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW Gupta also thinks its SaaS model gives it an edge over more legacy competitors. 'Bestow has an attractive end market that is large, resilient and relatively underserved by modern technology…,' he said. Gupta, who is joining Bestow's board as part of the financing, also noted that he was impressed by Bestow's ability to have won several large customers who were expanding their use of its platform. Its customers include Nationwide, Transamerica, USAA, Sammons Financial Group, and Equitable, among others. Other backers include Breyer Capital, Valar Ventures, New Enterprise Associates, Core Innovation Ventures, Morpheus Ventures, and Sammons Financial. Bestow, which has 167 employees, currently operates in the U.S. and is considering an international expansion.
