What's happened
Bestow, a life insurance technology startup, has raised $120 million in Series D funding to enhance its software offerings. The company, which previously sold its insurance business, aims to provide digital solutions to other insurers. This funding round was co-led by Goldman Sachs Alternatives and Keith Block's Smith Point Capital.
What's behind the headline?
Business Model Shift
- Bestow's transition from a direct insurer to a software provider reflects a broader trend in the insurance industry towards digital transformation.
- The company's no-exam underwriting gained popularity during the pandemic, indicating a shift in consumer preferences for convenience.
Funding Insights
- The $120 million funding round, described as oversubscribed, highlights investor confidence in Bestow's growth potential.
- With over $300 million raised to date, Bestow's valuation has reportedly doubled since its last funding round, showcasing strong market interest.
Market Position
- Bestow's SaaS model positions it favorably against traditional insurers, which often struggle with outdated systems.
- The company has secured significant clients, including Nationwide and Transamerica, indicating its growing influence in the market.
What the papers say
According to TechCrunch, Bestow's recent funding round was co-led by Goldman Sachs Alternatives and Keith Block's Smith Point Capital, emphasizing the startup's strong market position. The article notes that Bestow's annual recurring revenue grew threefold in 2024, showcasing its rapid growth. Additionally, Ashwin Gupta from Goldman Sachs highlighted the company's ability to pivot successfully, stating, 'Bestow has an attractive end market that is large, resilient and relatively underserved by modern technology.' This sentiment is echoed in the broader industry context, where digital solutions are increasingly prioritized.
How we got here
Bestow initially focused on direct-to-consumer life insurance, gaining traction during the COVID pandemic with its no-exam underwriting platform. In 2024, it sold its insurance business to Sammons Financial Group and shifted to a software-as-a-service model for other insurers.
Go deeper
- What will Bestow do with the new funding?
- How has Bestow's business model changed?
- Who are Bestow's main competitors?
Common question
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What Are the Latest Startups Securing Major Funding in 2025?
As of May 2025, the startup ecosystem is buzzing with activity as several innovative companies secure significant funding rounds. This trend reflects the growing interest from investors in tech solutions that address current market challenges. Below, we explore the latest funding news and what it means for the startup landscape.
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