- Coalition — a leading cyber insurance and security company — announced it has raised $205 million. These are the details.
Coalition — a leading cyber insurance and security company — announced it has raised $205 million to accelerate its scale, expand into new insurance lines and help organizations of all sizes remain secure in the face of increasing cyber threats. And the new funding round was co-led by Durable Capital, T. Rowe Price Associates, and Whale Rock Capital, with participation from the company’s existing investors, valuing Coalition at more than $3.5 billion.
Now Coalition serves more than 52,000 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. And 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. The data from Coalition’s H1 2021 Cyber Insurance Claims Report shows that its policyholders experience under one-third the claim frequency compared to other cyber insurance carriers.
The new funding round comes as Coalition continues to ride a wave of massive growth as it crosses $325 million in run-rate premium, an 800% increase over the prior year.
Coalition has raised more than $500 million in equity funding to date from leading global technology investors, including Durable Capital, T. Rowe Price Associates, Whale Rock Capital, Index Ventures, General Atlantic, Ribbit Capital, Vy Capital and Valor Equity Partners, etc. 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. This investment follows long-term capacity commitments from leading global insurers Swiss Re and Arch Insurance.
KEY QUOTES:
“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 analyze cyber risk once a year. We scan our policyholders 65,000 times a week. Our platform aggregates and analyzes 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.”
— Joshua Motta, CEO and co-founder of Coalition
“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.”
— Henry Ellenbogen, CIO of Durable Capital Partners LP
