21 May Bestow on a mission to revolutionize the life insurance industry with $15M raise
Bestow Inc. today announced it closed $15 million in Series A funding, led by Valar Ventures, with participation from existing investors New Enterprise Associates (NEA), Core Innovation Capital, 8VC, and Morpheus Ventures. This closing brings Bestow’s total financing to more than $18 million to-date.
Today, less than 44% of households have individual life insurance, yet 85% of consumers recognize the need for it. Bestow focuses on activating this consumer demand with a full stack approach that introduces consumers to modern life insurance products that can give millions of uncovered Americans affordable coverage, all delivered in a fully digital experience. Powered by a proprietary algorithmic underwriting engine, Bestow leverages predictive analytics to instantly determine risk and give consumers immediate access to comprehensive life insurance solutions, without any of the traditional challenges of working with an agent, lengthy applications, or medical exams.
The funding, which is one of the largest Series A financing rounds in Texas this year, comes ahead of the company’s national launch and aggressive growth trajectory.
“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,” said Melbourne O’Banion, CEO of Bestow. “We’ve built an entirely new model, essentially eliminating many of the principal pain points associated with researching and buying life insurance. Using advanced technology, we’ve developed an affordable, quick, and easy-to-use solution that allows people to obtain coverage in a matter of minutes without having to talk to an agent or get a medical exam.”
“Bestow is reshaping the life insurance process by bringing much needed innovation to one of the most regulated and stationary industries in existence,” said Andrew McCormack, a General Partner at Valar Ventures. “Using data and technology to turn a frustrating process into a seamless user experience, Bestow is breaking down the barriers for obtaining financial protection. We’re proud to be part of the team that is working to improve the lives of millions of American families, and shaking up a massive industry.”