Dallas-based insurance technology company Bestow Inc. has closed a $120 million oversubscribed Series D funding round, including primary and secondary investments.
The round was co-led by Growth Equity at Goldman Sachs Alternatives and Smith Point Capital. In addition to the equity financing, Bestow also secured a $50 million credit facility from TriplePoint Capital.
“This investment strengthens Bestow’s position as the preferred partner for life insurance and annuity providers seeking to modernize and scale,” Melbourne O’Banion, CEO and co-founder of Bestow, said in a statement. “We are accelerating product innovation to help the industry stay ahead of market trends, unlock new opportunities, and build lasting competitive advantages through technology. We’re deeply grateful to our investors and carrier partners for their support and shared belief in our mission to modernize the life insurance and annuities space.”
The company said the capital will fund the development of new products and services and help accelerate the expansion of Bestow’s platform in the life and annuities space. Bestow plans to increase its workforce to meet growing enterprise demand.
Bestow said that as part of the investment, Ashwin Gupta, Managing Director at Goldman Sachs, will join Bestow’s board of directors.
“There’s a growing need for a modern insurance technology platform that enables better solutions and outcomes for life and annuity carriers,” Gupta said in a statement. “We believe Bestow has developed such a platform and is driving innovation in the industry. We’re excited to invest in Bestow as they continue to expand their capabilities and reimagine the future of insurance technology.”
Keith Block, founder and CEO of Smith Point Capital, called Bestow “a transformative company.”
“The life insurance industry has remained virtually untouched by innovation for three decades,” Block said in a statement. “Bestow isn’t just offering another tech tool—they’re fundamentally transforming how insurers create and deliver products at the very core of their business operations. Their impressive enterprise customer roster, unprecedented for such a young company in this traditionally risk-averse market, demonstrates that Bestow has identified a truly mission-critical opportunity. Smith Point Capital is incredibly proud to not only invest in Bestow to help them accelerate their growth, but also partner with them as they redefine the industry.”
A ‘strategic shift’ in 2024
Bestow said the new funding milestone follows its 2024 divestiture of Bestow Life Insurance Co., a direct-to-consumer life insurance carrier, to Sammons Financial Group, marking a strategic shift to focus exclusively on enterprises through its vertical software platform, purpose-built for the entire life insurance value chain.
Bestow said it partners with industry leaders, including Nationwide, Transamerica, USAA, Sammons Financial Groups, among others, and will be announcing additional partners in the coming months.
The company said it has a 100% customer retention rate and has achieved a 245% year-over-year increase in transaction volume. Bestow said the Series D round caps a period of strong growth for the company, which it expects to continue “exponentially.”
Don’t miss what’s next. Subscribe to Dallas Innovates.
Track Dallas-Fort Worth’s business and innovation landscape with our curated news in your inbox Tuesday-Thursday.
R E A D N E X T
-
Palo Alto, California-based Fiddler AI said its $18.6 million Series B extension brings the round's total funding to $50 million. The company said the funds will help it "continue to build momentum in AI observability and AI safety."
-
The 2024 iC3 Summit, hosted by nonprofit BioNTX, is set to welcome over 1,000 industry professionals, researchers, entrepreneurs, and investors for its largest gathering yet. The event's formula—Innovation = Capital × Collaboration × Commercialization,—underscores its mission to drive breakthroughs through strategic partnerships and investments. The 2024 iC3 Summit, hosted by nonprofit BioNTX, is set to welcome over 1,000 industry professionals, researchers, entrepreneurs, and investors for its largest gathering yet. The event's formula—Innovation = Capital × Collaboration × Commercialization—underscores its mission to drive breakthroughs through strategic partnerships and investments.
-
The southern half of Dallas County is home to just over 1.05 million residents. That’s about 40% of the total number of people who call Dallas County home—and roughly 200,000 more than the entire population of San Francisco. Coupled with the fact that Dallas-Fort Worth is emerging as a top life science market, as documented in a 2023 CBRE report, you can see why the DeSoto Development Corp. is including an 80-acre Life Sciences Innovation Core among its major projects. “In terms of economic development, research shows that it’s more effective when it happens regionally,” says Matt Carlson, DDC's chief…
-
The Capital One program — one of few mobility-focused accelerators in the country — empowers visionary founders to enhance their startup expertise, expand their networks, and attract investors. The latest cohort wrapped up with standout pitches and notable wins.
-
In April, Bloomberg reported that Citation Capital aims to raise $850 million for its debut fund, which would be one of the largest-ever inaugural PE firm raises in Texas. Founded in 2023, the Dallas firm snagged a majority stake in "better for you" snack manufacturer Cibo Vita last October.
