Trinity Capital Invests in Beam Benefits

Investing.com — Trinity Capital (NASDAQ:TRIN) has agreed to commit $40 million in funding to Beam Benefits to help expand the online employee benefits platform’s operations.

In a statement on Thursday, Phoenix-based Trinity Capital Director Jack McNamara expressed enthusiasm about the partnership, stating they "look forward to our partnership with Beam and supporting their continued growth."

Trinity Capital provides venture debt and equipment financing to growth-stage companies. Recently, they announced a $70 million increase in their credit facility led by KeyBank, raising their total commitments to $510 million.

Founded in 2012, Beam started as a digital portal focused on dental benefits for workers at small businesses. Since then, it has broadened its services to include ancillary benefits like vision, life, disability, and supplemental health insurance.

Beam CEO Alex Frommeyer stated, "These funds will continue to propel Beam's modernization of employee benefits by building extraordinary tools that empower brokers and partner benefits providers all over the US." Frommeyer, a co-founder of Beam, will be succeeded by Tolithia Kornweibel later this month.

In 2023, Beam completed a previous $40 million fundraising round, bringing its total funding beyond $200 million and increasing its valuation by 25% compared to the start of its Series E round in early 2021.

The Series E raise, which typically occurs late in a start-up's funding process, was led by existing investor Georgian along with support from strategic partners, Beam disclosed.