Bestow Transforms Life Insurance with Tech Driven SaaS Platform and $120M Funding

In 2017, Melbourne O’Banion co-founded Bestow alongside Jonathan Abelmann with a mission to simplify life insurance acquisition through technology. Frustrated by his own challenges obtaining life insurance, O’Banion envisioned a more accessible, tech-enabled process that could streamline underwriting and policy servicing.

Bestow initially operated as a direct-to-consumer (D2C) insurance provider, processing over one million applications with a no-exam underwriting platform. This approach gained significant momentum during the COVID-19 pandemic when traditional medical exams were largely paused, highlighting the value of a fully digital underwriting process.

Recognizing the broader potential of their software, Bestow pivoted in 2024 by selling its insurance carrier and consumer business to Sammons Financial Group. The company shifted focus to providing its innovative software and services to other life insurers, enabling them to digitize operations and enhance customer experiences.

In a major milestone, Bestow announced a $120 million Series D funding round, co-led by Goldman Sachs Alternatives’ Growth Equity and Smith Point Capital, with participation from prominent investors including Breyer Capital and New Enterprise Associates. This oversubscribed round includes $75 million in primary and $45 million in secondary investments, alongside a $50 million credit facility from TriplePoint Capital.

Bestow’s valuation has approximately doubled since its Series C in 2020, reflecting rapid growth. The company’s annual recurring revenue (ARR) grew threefold in 2024 and tenfold over the past two years, driven by its enterprise SaaS and performance-based revenue model, primarily through usage fees.

Goldman Sachs partner Ashwin Gupta highlighted Bestow’s strong leadership team and successful pivot as key investment drivers. The SaaS model positions Bestow advantageously against legacy competitors by addressing a large, resilient market underserved by modern technology.

Bestow’s client roster includes major insurers such as Nationwide, Transamerica, USAA, Sammons Financial Group, and Equitable. These partnerships underscore the platform’s scalability and effectiveness in helping insurers expand their digital capabilities and improve operational efficiency.

With a team of 167 employees, Bestow currently operates across the U.S. and is exploring international expansion opportunities. Its evolution from a consumer-facing insurer to a SaaS technology provider exemplifies how digital innovation can reshape traditional industries like life insurance.

The Broader Significance of Bestow’s Transformation

Bestow’s journey highlights the critical role of technology in modernizing the life insurance sector, traditionally burdened by slow, paper-based processes and legacy systems. By pioneering no-exam underwriting and scalable SaaS solutions, Bestow is enabling insurers to meet growing consumer expectations for speed, transparency, and digital engagement.

The company’s success also underscores the value of strategic pivots in startup growth, leveraging core technology assets to unlock new revenue streams and market opportunities. Bestow’s SaaS platform not only improves operational efficiency for insurers but also enhances customer experiences by simplifying policy acquisition and management.

As the insurance industry increasingly embraces digital transformation, Bestow’s model serves as a blueprint for integrating innovative technology to drive growth, reduce friction, and stay competitive in a rapidly evolving market.