Investing.com -- Trinity Capital (NASDAQ:TRIN) has agreed to commit $40 million in funding to Beam Benefits in a bid to help the online employee benefits platform expand its operations.
In a statement on Thursday, Phoenix-based Trinity Capital Director Jack McNamara said the group "look[s] forward to our partnership with Beam and supporting their continued growth."
Trinity Capital is a provider of venture debt and equipment financing to "growth-stage" companies, according to its website. In September, it announced a $70 million increase in its credit facility led by KeyBank, bringing its total commitments to $510 million.
Beam, meanwhile, was founded in 2012 as a digital portal focused on dental benefits for workers at small businesses. It has since increased its scope to include ancillary benefits like vision, life, disability and supplemental health insurance.
"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,” said Beam CEO Alex Frommeyer.
Frommeyer, a co-founder of Beam, is due to be replaced at the helm of the group by Tolithia Kornweibel later this month.
In 2023, Beam unveiled a previous $40 million fundraising, which increased its total funding then to more than $200 million. At the time, the move also brought its valuation up by 25% when compared to start of its Series E round of funding in early 2021.
The Series E raise, which can occur late in a start-up's funding process, was led by existing investor Gerogian and included sponsorship from other strategic partners, Beam said.