The digital life insurance platform announced today that it has closed a $2.5 million seed round. This is Bestow’s first institutional round, bringing its total financing raised since inception in 2016 to $3.1 million.
Bestow was founded by entrepreneurs Melbourne O’Banion and Jonathan Abelmann with the goal to launch a consumer-first life insurance solution driven by analytics and technology. Bestow aligns with customers by reducing friction and cost and providing top-rated financial products.
“Most Americans view life insurance as a valuable financial product, yet millions remain uncovered due to legacy friction and complexity caused by the current model,” said Melbourne O’Banion, CEO of Bestow. “We set out to build a better model and solve this coverage gap. By developing new products and leveraging technology, we are introducing an entirely new way to make life insurance accessible and affordable for all.”
Bestow will soon launch a comprehensive solution enabling users to learn, apply, buy and manage coverage needs on-demand. By removing the need for face-to-face interaction, including agent and medical exam requirements, and reinventing products to optimize an online purchase, the Dallas-based company hopes to compress what used to take hours into minutes.
“Bestow’s alignment with customers is only enhanced by technology,” said Jonathan Abelmann, President of Bestow. “Our full-stack solution delivers a more seamless user experience alongside deep analytics to drive product development, resulting in better value and happier customers over time. We are excited for our investors to join us as we build a best-in-class team and revolutionize the way people prepare for their financial future.”
“Traditionally, the barriers for consumers to access life insurance have been extremely high,” said Rick Yang, Partner at NEA. “Bestow has a new approach that utilizes technology and unique products to allow more people to easily and affordably get the protection they need from a trusted source. We’re looking forward to working with the company as they democratize access to life insurance.”
Bestow’s seed round was led by New Enterprise Associates (NEA), with participation from Core Innovation Capital, Morpheus Ventures, and 8VC. NEA, a global venture capital firm, helps entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With more than $20 billion in cumulative committed capital since the firm’s founding in 1977, NEA invests in technology and healthcare companies at all stages in a company’s lifecycle, from seed stage through IPO.