Columbus startup Beam Dental announced Tuesday that it has raised $80 million in new funding from a group of investors, including Nationwide.
“We’re in the early innings of this story, which is just how big can this company be? Just how quickly we can go from a relatively small business to a brand and business that will stand the test of time?” said Alex Frommeyer, Beam’s CEO and co-founder.
The latest round of funding was led by Salt Lake City-based Mercato Partners’ growth equity fund, Traverse. Columbus-based venture capital firm Drive Capital also is among the investors.
The round brings Beam’s total funding to more than $160 million.
Nationwide wouldn’t say how much it invested. For its part, Beam won’t disclose how much it is worth after the new round of funding.
Beam’s goal is to take on what it says is an antiquated, paper-laden, $75 billion dental insurance industry.
Its digital platform makes everything from quotes to claims fast and easy for brokers, members and employers. Quotes can be obtained in 30 seconds.
Also, members who use Beam’s internet-connected toothbrush might earn lower dental insurance rates and incentives to maintain better wellness overall. Beam’s brush program has produced more than 100 million brushing minutes to date, helping employers control their insurance costs and helping members earn rewards.
Beam dates to 2012, when three engineers started the company. Since then, it has grown to 250 employees and is on track to top 300 this year. It has offices Downtown, but embraces remote work.
The company serves employers in 41 states. Its revenue has grown by 600% over the past three years, and it doubled its member base in 2019 and again in 2020.
Beam will use the money to expand to new markets and add products.
Frommeyer said the company, as part of a partnership with Nationwide, already offers life insurance and soon will offer disability insurance. Through another partnership, it began offering vision insurance a few years ago.
The expansion beyond dental insurance came from feedback from employers and brokers.
“They loved our approach to digital-first dental insurance,” Frommeyer said. “There are other popular employee benefit products that can serve as an elegant bundle to that relationship with the employer.”
After health insurance, dental insurance is the second most desired benefit sought by workers, he said.
“It makes a lot of sense from Nationwide’s perspective to play a role in a package of products that can be bought at the same time, led by Beam’s very unique approach to dental,” Frommeyer said. “For us, it’s an elegant partnership because it give us more tools in the toolkit for when employers are looking for not one, but many solutions to the issues of attracting and retaining their employees.”
Nationwide recently announced it is boosting its venture capital investments to $350 million.
With the venture fund, Nationwide has invested in 25 companies and helped facilitate 31 partnerships between startups and Nationwide business units. One of them, Matic, a digital insurance agency, is based in Columbus.
“We’ve known Beam for for quite awhile, and we’ve wanted to invest in the company,” said Erik Ross, the leader of Nationwide’s venture capital team. “The opportunity wasn’t there until this last round.’’
Though Nationwide might be best known for auto, home and other insurance products along with financial services, it also is the nation’s biggest pet insurer.
Ross gives Beam credit for developing technology that could have health benefits for years to come.
“The connected toothbrush really provides a unique data set that not only can help drive behavior change in dental hygiene, but also has potential for other health aspects that haven’t been tapped into yet,” Ross said.
Source: Columbus Dispatch
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