Beam Benefits has cut its workforce for the second time in 11 months, and less than four months after raising nearly $41 million in venture capital.
Coverager, an insurance industry trade publication, put the number at 74 employees, citing "information we obtained." Employees changing their LinkedIn status to "open to work," from roles including software engineering and sales, and remaining employees offering help with networking mentioned "so many amazing people" and that Beam "lost a good portion of great people."
Co-founder and CEO Alex Frommeyer was not immediately available by email and LinkedIn direct message. One press contact announced leaving for another job last week, and the other has not responded to requests for information.
Frommeyer cited macroeconomic conditions including high interest rates in a Tuesday teleconference with one group of workers being informed they were being let go, said one impacted person who asked not to be named. Their company-issued computer locked them out shortly afterward.
Based in 80 on the Commons downtown, Beam has said it has tens of thousands of small and medium-sized employers as customers, with hundreds of thousands of covered employees and dependents. It started with dental insurance but has added vision, life, disability, and other benefits other than medical. Beam uses technology to design and administer plans for other underwriters.
The end of the year is typically the busiest time for benefits companies as employers enroll in plans that start Jan. 1. It was not immediately clear if seasonal swings or missing enrollment targets impacted this reduction.
In November Beam had been named for the third consecutive year to the 2023 Deloitte Technology Fast 500 list, based on nearly quadrupling revenue from 2019 through 2022. Beam was on track in 2023 to increase revenue by 40% year-over-year, according to a release then.
In September the company had raised nearly $41 million at an increased valuation – contrary to national VC trends – to speed growth and product development for its suite of digitally-powered employee benefits for small and medium businesses. The valuation amount was not disclosed. The round's total was reported as $40 million, and a subsequent SEC filing indicated it had grown to $40.9 million, which a spokesman confirmed was correct.
Frommeyer cited "aggressive growth plans" in a release at the time.
Beam cut about 31 jobs, then 8% of its workforce, last February, citing economic uncertainty heading into 2023 despite rapidly growing revenue.
The 12-year-old insurer changed its name from Beam Dental in 2022 after broadening its offerings. The dental coverage is paired with a smart toothbrush, with subscription replacement brush heads and toothpaste for members, and an app gives feedback on brushing habits to keep costs down through preventative care.
The company, incorporated as Beam Technologies Inc., has raised a cumulative $201 million in venture capital. It was one of the earliest investments of Columbus VC firm Drive Capital LLC. Columbus insurance giant Nationwide invested in 2021, and underwrites some of the benefits Beam administers.
Frommeyer is among Central Ohio's most admired leaders of large employers in this year's Columbus Business First C-Suite Awards. The company also made this year's Inc. 5000 for its revenue growth from 2019 to 2022.
Columbus-based Branch Insurance, a digital insurer for home and auto, also confirmed an undisclosed number of job cuts made Tuesday, and also had reduced its workforce in June.
