Bestow, the Dallas-based insurtech startup that’s reshaping how life insurance works, just closed a $120 million Series D funding round co-led by Goldman Sachs Alternatives and Smith Point Capital. The fresh capital will help Bestow launch new underwriting tools and digital products that make life insurance faster, simpler, and more accessible for insurers and their customers.
Co-founded in 2017 by Melbourne O’Banion and Jonathan Abelmann, Bestow began as a direct-to-consumer platform for life insurance. O’Banion’s personal frustration with the traditional life insurance process inspired the startup’s mission: to remove friction and make coverage easier to access. Over time, Bestow’s no-medical-exam underwriting gained popularity, especially during the COVID-19 pandemic when in-person exams were paused. The company processed over a million applications in those early years.
But Bestow wasn’t just building an insurance brand—it was also quietly developing the tech backbone behind its fast-growing service. By 2024, it made a bold pivot. Bestow sold off its insurance carrier and consumer-facing business to Sammons Financial Group and doubled down on offering software-as-a-service (SaaS) tools to other life insurers. That pivot now looks like a masterstroke.
According to Bestow, the latest Series D round was oversubscribed. Of the $120 million total, $75 million is primary funding, while $45 million came from secondary investments. The company also secured a $50 million credit facility from TriplePoint Capital. While Bestow hasn’t disclosed its current valuation, O’Banion confirmed it has roughly doubled since the $70 million Series C round in late 2020. With this latest infusion, Bestow’s total equity funding surpasses $300 million.
O’Banion didn’t provide exact revenue numbers but said Bestow’s annual recurring revenue tripled in 2024 and grew 10x over the past two years. The company’s income primarily comes from a usage-based SaaS model, reflecting its shift from an insurer to an enterprise tech provider.
Ashwin Gupta, partner at Goldman Sachs Alternatives’ Growth Equity team, is joining Bestow’s board as part of the deal. He praised the team for their ability to successfully pivot and execute at scale. Gupta emphasized that the life insurance market remains largely underserved by modern technology, giving Bestow a strategic advantage with its enterprise SaaS approach. He also pointed to strong client momentum as a positive signal, with large insurers increasing their use of Bestow’s platform.
Bestow’s client list already includes big names like Nationwide, Transamerica, USAA, Sammons Financial, and Equitable. The insurtech currently employs 167 people and operates exclusively in the U.S., though international expansion is reportedly under consideration.
Other backers in the latest round include Breyer Capital, Valar Ventures, NEA, Core Innovation Ventures, Morpheus Ventures, and existing customer Sammons Financial.
For a company that started with a simple goal—to make life insurance more accessible—Bestow has now become a key digital partner for major insurers looking to modernize.
