Melbourne O’Banion, alongside Jonathan Abelmann, founded the insurtech company Bestow in 2017 after facing challenges in securing a life insurance policy for himself. Their mission was to simplify the process of obtaining life insurance and to leverage technology to enhance this experience.
Initially, Bestow functioned as a direct-to-consumer insurance provider, handling the sales, underwriting, and servicing of life insurance policies. Over its first few years, the startup processed over a million applications. Bestow’s no-exam underwriting platform gained significant popularity during the COVID-19 pandemic when traditional medical exams were suspended. As their direct-to-consumer (D2C) business expanded, Bestow concurrently developed software aimed at modernising the insurance process.
In 2024, recognising the potential of their software, Bestow sold its insurance carrier and consumer divisions to Sammons Financial Group for an undisclosed amount. This strategic pivot shifted Bestow’s focus to offering its technology and services to other life insurance companies, enabling them to adopt a more digital approach and enhance customer service.
Recently, Bestow announced a successful Series D funding round, raising $120 million, which included $75 million in primary investments and $45 million in secondary investments. The fundraising effort, which O’Banion labelled as “oversubscribed,” was co-led by Goldman Sachs Alternatives’ Growth Equity and Keith Block’s Smith Point Capital. Additionally, Bestow secured a $50 million credit facility from TriplePoint Capital. While specifics on valuation were not disclosed, O’Banion noted that it had “approximately doubled” since the company’s previous funding round in December 2020, bringing total equity funding to over $300 million.
Although Bestow’s financial details remain private, O’Banion indicated that the company’s annual recurring revenue has tripled in 2024 and increased tenfold over the previous two years. The firm operates on an enterprise software-as-a-service (SaaS) revenue model, primarily earning through usage fees.
Goldman Sachs’ Ashwin Gupta expressed his enthusiasm for backing Bestow, citing the repeat entrepreneurial successes of its founders and the startup’s effective business pivot as notable factors. He remarked on Bestow’s SaaS model, which he believes offers a competitive advantage over traditional players in the market, highlighting its significant and underserved target market.
Bestow serves a broad client base, which includes notable names such as Nationwide, Transamerica, USAA, Sammons Financial Group, and Equitable. Supported by a diverse group of investors, including Breyer Capital and Valar Ventures, Bestow currently employs 167 people and is exploring opportunities for international growth.
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