Venture Capital: Cyber-Risk Insurer Coalition Scores $175M Round
The funding marks investors’ rising interest in companies that offer cybersecurity insurance.
A rash of high-profile, sophisticated, and allegedly state-sponsored cyberattacks on American companies and government agencies has brought businesses face-to-face with the risks they face from hackings and ransomware attacks. Within commercial insurance, coverage against cyber risks is a relatively new phenomenon. Coalition, a cybersecurity platform that also provides insurance, announced Wednesday its raise of $175 million. (Crunchbase) The company has now raised a total of $300 million from investors.
The company goes beyond selling cyber insurance and offers its cybersecurity platform and a range of other cybersecurity tools to customers to ward against digital threats.
“Not only does Coalition provide peace of mind after a loss, but also peace from mind: their risk management platform, predictive analytics, and incident response services help organizations decisively and affirmatively remain resilient to risk,” said Shardul Shah, Partner at Index Ventures, on the occasion of the latest funding.
Coalition’s latest funding round, which valued it at $1.75 billion, was led by Index Ventures. General Atlantic and other existing investors also participated in the financing.
The company said it intends to build on its leadership in the cyber insurance market and diversify into other lines of commercial insurance using technology as a differentiator from traditional, pre-WWII-founded insurance companies.
“The future of insurance will be defined by technology, and we will continue to invest in building a leading technology company focused on innovation across all aspects of the insurance value chain,” said Motta.
It said it intends to offer insurance cover for various other business risks that may not be “well covered by standard business insurance policies.”
Also on the anvil is a global expansion drive, following after a 2020 launch in Canada.
A spate of fundraising in cyber insurance
Last Wednesday, Boston-based Corvus Insurance announced a $100 million Series C funding at a $750 million valuation. Corvus, as in the case of Coalition, offers a proprietary platform that uses data and machine learning and can assess a company’s IT and software risks in a matter of minutes.
The next day, Pleasanton, California-based insurtech startup Cowbell Cyber said it closed a $20 million Series A.
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