Beam Dental, a digital-first dental insurer that rewards its members for good dental hygiene, has raised $80 million in an oversubscribed series E funding round.
The round was led by Mercato Partners’s growth equity fund, Traverse, with participation from new and existing investors, including Drive Capital, Georgian, Nationwide, and Breakout Capital. The round brings Beam’s total funding to more than $160 million.
Beam is simplifying the dental insurance industry for members, brokers and employers by using data, machine learning and technology to deliver more accurate custom quotes, better customer service through a digital platform, and lower insurance rates.
Members who use Beam’s connected toothbrush may earn lower insurance rates based on their dental hygiene as well as incentives to maintain better wellness overall.
Beam’s brush programme has produced more than 100 million brushing minutes to date, helping employers control their insurance costs and helping members earn rewards.
The insurtech firm has grown to 250 employees since launch in 2012, expanded to serve employers in 41 US states and increased its dentist network to 400,000 access points in all 50 states.
Beam has grown revenue by 600% over the past three years, with a net revenue retention rate of 100%. It doubled its member base in 2019 and again in 2020.
Alex Frommeyer, chief executive officer and co-founder of Beam, says: “At Beam, our vision is to modernise dental insurance by making it simpler and more intelligent. Our dental offering completely changes the way employers of all sizes think about dental wellness, by encouraging their employees to take better care of their teeth and making it easier to take a more proactive role in their dental care.”
Beam will use the funding to expand its offering to new markets, onboard additional employee benefits brokerages and add products.
Joe Kaiser, director of Mercato Partners, says: “As the only digitally native dental insurance company, Beam leverages technology to promote better overall health for its members and provide more accurate benefit pricing for its employers. Since its inception, Beam has driven innovation in the dental industry and enhanced the digital experience for its members, employers and brokers.”