Coalition, a San Francisco-based cyber insurance company for small and midsize businesses founded by John Hering and Joshua Motta, announced it has closed a $40 million funding round led by Ribbit Capital. Greenoaks Capital and Hillhouse Capital also participated in this round.
What does Coalition do? It aims to solve cyber risk for all organizations by democratizing access to cybersecurity tools that prevents and mitigates loss. And it also provides expert incident response and comprehensive insurance coverage.
With this funding round, Coalition is going to expand its global and Internet-scale data platform — which analyzes hundreds of millions of data points to assess risks within organizations in minutes. And Coalition is going to scale this global platform to provide cybersecurity risk management tools to any organization for free.
“Cyber losses cost the global economy an estimated $1.5 trillion each year, forcing thousands of SMBs to close their doors after experiencing a security failure,” said Coalition CEO and co-founder Joshua Motta. “Outdated approaches to cybersecurity aren’t working. While companies can’t eliminate cyber risk, they can eliminate the cost of it.”
This new funding round will be used to triple Coalition’s engineering and incident response team over the next year. And the company recently appointed Leon Rishniw as Head of Engineering. Rishniw previously led engineering teams at Expanse and Cloudmark.
Coalition’s comprehensive insurance coverage and cybersecurity tools provide organizations with protection from the entire spectrum of cyber risk such as network breaches, systems failures, ransomware, business interruption, funds transfer fraud, privacy liability, regulatory fines, penalties, property damage, etc.
“The cybersecurity industry is massive, at over $100 billion in revenue, yet security providers fail to eliminate breaches on behalf of their clients. By contrast, the cyber insurance industry, which actually shares the incentives of its customers to prevent breaches, is only $4 billion today. The relative size of these two markets should be inverted,” added Ribbit Capital general partner Nick Shalek. “Coalition has the strongest team to change the way businesses manage cyber risk having built an unrivaled intelligence platform to underwrite risk based on the real-time indicators that an attacker would use, and a real capability to assist during a claim.”