Insurtech Bestow lands $120M Series D from Goldman Sachs, Smith Point Capital

Tech Crunch - May 13th, 2025

Melbourne O’Banion's insurtech company, Bestow, has raised $120 million in a Series D funding round to enhance its software offerings and expand its product line. Co-led by Goldman Sachs Alternatives’ Growth Equity and Keith Block’s Smith Point Capital, the funding includes $75 million in primary and $45 million in secondary investments. Additionally, a $50 million credit facility has been secured from TriplePoint Capital. This investment follows Bestow's strategic pivot from a direct-to-consumer life insurance provider to a SaaS company catering to other insurers, after selling its consumer business to Sammons Financial Group. The company plans to utilize the new funds to introduce new products and underwriting capabilities as it continues to scale its operations.

Bestow's shift in focus to providing software solutions has attracted significant interest due to its ability to modernize and digitize the insurance industry. The company's SaaS model offers a competitive edge over traditional competitors, a point highlighted by Ashwin Gupta of Goldman Sachs, who joins Bestow's board. Bestow has established relationships with major insurers like Nationwide, Transamerica, and USAA, contributing to its revenue growth, which has reportedly increased tenfold over the past two years. With a strong U.S. presence and a workforce of 167 employees, Bestow is now considering international expansion to further leverage its technology in global markets.

Saa S Bestow Melbourne O’banion Jonathan Abelmann Goldman Sachs Alternatives Keith Block Smith Point Capital Triple Point Capital Sammons Financial Group Insurtech Series D Funding Life Insurance

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RATING

6.8

Fair Story

Consider it well-founded

The article provides a detailed and timely account of Bestow's business developments, focusing on its strategic pivot and recent funding achievements. It effectively communicates the company's evolution and growth potential, supported by statements from credible sources like investors. However, the lack of diverse perspectives and transparency in certain financial details slightly detracts from its overall quality. The article is well-structured and clear, making it accessible to a specialized audience interested in insurtech and investment. While it addresses topics of public interest, its impact and engagement potential are moderate, with limited controversy or debate provocation. Overall, the article serves as a solid business update but could benefit from broader context and independent analysis to enhance its depth and reliability.

Accuracy

The article presents a largely accurate account of Bestow's evolution and recent developments. It correctly identifies Melbourne O’Banion and Jonathan Abelmann as the co-founders and details the company's shift from a direct-to-consumer model to a software provider for other insurance companies. The claim about Bestow raising $120 million in Series D funding aligns with known reports, and the mention of co-leaders Goldman Sachs Alternatives and Smith Point Capital is consistent with external sources. However, the article omits specific details about the terms of the credit facility from TriplePoint Capital and the exact valuation post-funding. These omissions slightly detract from its overall accuracy.

Balance

The article primarily focuses on Bestow's business achievements and strategic shifts, offering insights into the company's growth and funding. It includes perspectives from investors like Ashwin Gupta, providing a view of why Bestow is considered a promising investment. However, it lacks viewpoints from industry analysts or competitors that could offer a more comprehensive view of Bestow's market position. The absence of potential challenges or criticisms faced by the company suggests a slight imbalance, potentially skewing the narrative towards a more positive outlook.

Clarity

The article is well-structured and uses clear, concise language to convey Bestow's business developments. It effectively outlines the company's history, strategic shifts, and recent funding achievements, making it accessible to readers with varying levels of familiarity with the insurtech industry. The logical flow from Bestow's founding to its latest funding round ensures that the information is easy to follow. However, some technical terms related to financial transactions could be better explained for general readers.

Source quality

The article appears to rely heavily on statements from Bestow's co-founder and investors, which are credible but may carry inherent biases. The lack of independent sources or expert commentary limits the depth of the analysis. While the involvement of reputable entities like Goldman Sachs lends some credibility, the article would benefit from a more diverse range of sources, including industry experts or data from market research firms, to enhance its reliability.

Transparency

The article provides a clear narrative of Bestow's business changes and funding achievements but lacks transparency in certain areas. It does not disclose specific terms of the credit facility or the company's valuation post-funding, which are crucial for understanding the full financial context. Additionally, while it mentions the oversubscription of the funding round, it doesn't clarify the criteria or metrics used to determine this status. Greater transparency in these areas would improve the article's credibility.