Dallas-based Bestow Inc. has closed $15 million in Series A funding ahead of the company’s national launch of its life insurance services platform.
The Series A raise was led by New York City-based Valar Ventures, with participation from existing investors New Enterprise Associates, Core Innovation Capital, 8VC, and Morpheus Ventures. It brings Bestow’s to-date capital raise to $18 million.
“It’s clear there is a gap for consumers between the demand for life insurance protection and their ability to navigate the friction typically involved in getting covered.”
In November, the company launched its full-stack platorm in Texas, offering Texans the ability to quickly learn their insurance options, apply for, and buy coverage without a medical exam. Via Bestow, consumers have access to term life insurance plan options, including a two-year term that makes life insurance accessible and affordable, according to the company.
“It’s clear there is a gap for consumers between the demand for life insurance protection and their ability to navigate the friction typically involved in getting covered,” CEO Melbourne O’Banion said in a release. “We’ve built an entirely new model, essentially eliminating many of the principal pain points associated with researching and buying life insurance.”
Bestow told Dallas Innovates it will launch nationally in the next three to six months, and will roll out its platform state by state. During the remainder of the year, the company will continue to launch new states until it is available nationwide.
BESTOW USES PROPRIETARY ALGORITHMIC UNDERWRITING ENGINES
Bestow’s platform is powered by a proprietary algorithmic underwriting engines, which allows Bestow to leverage predictive analytics to instantly determine risk.
That gives consumers immediate access to comprehensive life insurance solutions without having to work through an agent, lengthy application forms, or medical exams, the company said.
O’Banion, co-founded the company with Jonathan Abelmann, Bestow’s president.
“Using data and technology to turn a frustrating process into a seamless user experience, Bestow is breaking down the barriers for obtaining financial protection,” Valar Ventures General Partner Andrew McCormack said in a release.
Valar was founded by McCormack, James Fitzgerald, and well-known tech billionaire Peter Thiel. It focuses on the growing a number of transformative technology companies that are being started outside of Silicon Valley.
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