Cyber insurance and security company Coalition has raised US$175 million (around CA$217 million) to fund its growth and global expansion. The funding was led by Index Ventures, with participation from General Atlantic and the company’s existing investors, valuing Coalition at US$1.75 billion.
“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,’ said Joshua Motta, co-founder and CEO of Coalition. “Our ambitions now extend beyond cyber insurance. Nearly one in 10 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.”
With the funding, Coalition plans to invest in three key areas:
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,” Motta said.
Expand to new product lines: Coalition plans to launch new insurance products to address a range of risks facing modern businesses, many of which are not well covered by standard business insurance policies.
International expansion: Following its expansion into Canada last year, Coalition intends to expand into multiple new international markets.
“Coalition is the clear leader in this space, and we’re excited to support their vision to reimagine commercial insurance,” said Shardul Shah, partner at Index Ventures. “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.”
“Despite a surge in cyberattacks and ransomware, Coalition has delivered industry-leading loss performance by leveraging differentiated technology across the policy lifecycle,” said Paul Stamas, managing director and global co-head of financial services at General Atlantic. “We’re excited by the innovation that Coalition is driving in cyber insurance.”
Coalition has raised $300 million in equity funding from technology investors including Index Ventures, General Atlantic, Ribbit Capital, Vy Capital, Hillhouse Capital and Valor Equity Partners.