Cyber insurance and security company Coalition has announced that it has raised US$205 million (around CA$260.09 million) in a Series E funding round to accelerate its scale and expand into new insurance lines. The funding round was co-led by Durable Capital, T. Rowe Price Associates and Whale Rock Capital, with participation from the company’s existing investors. This round brings Coalition’s valuation to more than US$3.5 billion (around CA$4.44 billion).
Coalition currently serves more than 52,000 customers. It provides cybersecurity tools to prevent losses, security and incident response services, and comprehensive insurance to help organizations recover from failures and breaches. Data from Coalition’s H1 2021 Cyber Insurance Claims Report shows that the company’s policyholders experience less than one-third the claim frequency compared to other cyber insurance carriers.
“We are building a new kind of insurance with technology at its core,” said Joshua Motta, co-founder and CEO of Coalition. “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.”
The new funding comes as Coalition continues to experience significant growth. The company recently crossed US$325 million in run-rate premium, an 800% increase over the prior year. Last month, Motta was invited to the White House to participate in a cybersecurity policy meeting convened by President Joe Biden. At that meeting, Coalition announced its commitment to offer its risk management platform, Coalition Control, at no cost to any business, effective immediately.
“Coalition is solving a critical gap in the cyber risk and insurance space by aligning the right incentives,” said Henry Ellenbogen, CIO of Durable Capital Partners. “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.”