Cyber insurance and security firm Coalition has raised $205m from a Series E funding round, lifting its valuation to $3.5bn.
The round was co-led by Durable Capital, T.Rowe Price Associates and Whale Rock Capital. To date, Coalition has raised over $500m in equity funding from a range of leading global technology investors.
Founded in 2017, Coalition is a leading provider of cyber insurance and security and offers no-cost cybersecurity tools to help prevent losses, security and incident response services to contain them, alongside insurance to help organisations recover from failures and breaches.
The company markets Coalition Control, a platform that includes continuous attack surface monitoring, recommendations on how to close security vulnerabilities and a downloadable risk assessment to help firms control their cyber risk exposure.
According to Coalition, it intends to use the newly raised capital to accelerate its scale, expand into new insurance lines and help organisations continue to remain secure.
The new funding comes off the back of a strong year for Coalition, with the company crossing $325m in run-rate premium, an 800% increase compared to 2020.
Coalition remarked, “While a dramatic increase in the number of cyber incidents in 2021 has triggered higher losses for many major cyber insurance providers, Coalition’s technology-first approach is powering a new, more successful model of risk management. Data from Coalition’s H1 2021 Cyber Insurance Claims report show that its policyholders experience less than one-third the claim frequency compared to other cyber insurance carriers.”
Coalition CEO and co-founder Joshua Motta said, “We are building a new kind of insurance with technology at its core. This is a dramatically different approach and it’s working. Insurers need to do more than analyse cyber risk once a year. We scan our policyholders 65,000 times a week.
“Our platform aggregates and analyses data from every internet-addressable device inside a company, scanning a policyholder’s assets to identify potential vulnerabilities so we can help minimize risks. We are setting a new standard for an industry that has been slow to unleash the full power of data, and this has positioned our company for tremendous growth in the digital economy.”
Motta was recently invited to the White House for a meeting with President Joe Biden on the topic of cybersecurity policy. During the talk, he revealed Coalition will publicly offer Coalition Control at no cost to any business effective immediately.
Durable Capital Partners CIO Henry Ellenbogen added, “Coalition is solving a critical gap in the cyber risk and insurance space by aligning the right incentives. The team at Coalition has vastly outpaced the industry in its ability to leverage data and capture the lion’s share of tech and the technology-powered insurance market. We believe digital assets will soon be more valuable than physical assets placing Coalition firmly on the path toward long-term sustainable growth and value creation.”
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