- Leading cyber insurance and security company Coalition announced it raised $175 million at a $1.75 billion valuation. These are the details.
Coalition — a leading cyber insurance and security company — announced it has raised $175 million to accelerate its rapid growth and global expansion. And Index Ventures led the funding with participation from General Atlantic and the company’s existing investors, which valued Coalition at $1.75 billion.
Coalition has raised $300 million in total equity funding from leading global technology investors, including Index Ventures, General Atlantic, Ribbit Capital, Vy Capital, Hillhouse Capital, and Valor Equity Partners, among others. Launched in 2017 by Joshua Motta and John Hering, Coalition is one of the largest cyber insurance and security providers in the United States and Canada. Now Coalition serves over 42,000 customers, providing no-cost cybersecurity tools to prevent losses, security and incident response services to contain them, and comprehensive insurance to help organizations recover from failures and breaches. The investment follows long-term capacity commitments from leading global insurers Swiss Re and Arch Insurance.
With this funding, Coalition plans to invest in 3 key areas:
1.) Build the digital insurance company of the future.
2.) Expand to new product lines — Following its explosive growth in cyber and technology insurance, Coalition plans to imminently launch new insurance products to address a range of risks facing the modern enterprise, many of which are not well covered by standard business insurance policies.
3.) International expansion: Following the expansion into Canada in 2020, Coalition plans to expand its offerings into multiple new international markets.
KEY QUOTES:
“We founded Coalition four years ago with a mission to solve cyber risk, introducing a technology-led approach to risk management and insurance underwriting, pricing, and distribution. Our ambitions now extend beyond cyber insurance. Nearly one in ten Fortune 500 companies is an insurance company, yet most were founded before World War II. With this funding, we plan to bring our technology-driven approach to other lines of commercial insurance as we seek to build the digital insurance company of the future.”
“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.”
— Joshua Motta, CEO and co-founder of Coalition
“Coalition is the clear leader in this space and we’re excited to support their vision to reimagine commercial insurance. 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.”
— Shardul Shah, Partner at Index Ventures
“Despite a surge in cyber attacks and ransomware, Coalition has delivered industry-leading loss performance by leveraging differentiated technology across the policy lifecycle. We’re excited by the innovation that Coalition is driving in cyber insurance.”
— Paul Stamas, Managing Director and Global Co-Head of Financial Services at General Atlantic
