Bestow Inc., the company behind a revolutionary new approach to life insurance, today announced it closed a $2.5 million seed round led by New Enterprise Associates (NEA), with participation from Core Innovation Capital, Morpheus Ventures, and 8VC. 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, 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.”
Today, 85% of Americans believe they should have life insurance, but only 41% actually do. Among the many reasons why more consumers don’t have life insurance, lack of understanding, perceived cost, and hassle of purchasing consistently top the list. 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, Bestow compresses what used to take hours into minutes.
“Bestow’s alignment with customers is only enhance 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.”
Stay tuned for more information, as Bestow expects to launch this fall. In the meantime, please visit https://www.hellobestow.com to learn more.
Bestow is revolutionizing the approach to life insurance, helping this generation secure a financial future for themselves and their families. Bestow is the first comprehensive digital life insurance solution. The company provides simple products, algorithmic underwriting, and data-driven financial solutions in a bundled, streamlined user experience. For more information about Bestow, please visit https://www.hellobestow.com.
New Enterprise Associates, Inc. (NEA) is a global venture capital firm focused on helping 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. The firm’s long track record of successful investing includes more than 210 portfolio company IPOs and more than 360 acquisitions. For additional information, visit www.nea.com