By Ryan Smith
Cyber insurance start-up At-Bay has closed a $185 million Series D funding round. The new round was co-led by Icon Ventures and Lightspeed Venture Partners, with participation from existing investors including Khosla Ventures, M12, Acrew Capital, Qumra Capital, the HSB fund of Munich Re Ventures, entrepreneur Shlomo Kramer, and Glilot Capital.
The latest round is the company’s third in the past 18 months, and brings its overall funding to $272 million. At-Bay’s valuation now sits at $1.35 billion.
At-Bay’s cybersecurity expertise has helped the company achieve rapid growth, it said. That expertise has also minimized losses to less than half the industry average.
“We are seeing a shift in commercial insurance with regard to cyber risk, and At-Bay is leading the way,” said Rotem Iram, co-founder and CEO of At-Bay. “While legacy insurers are pulling back on coverage and raising rates in the face of challenges like ransomware, At-Bay is doubling down with a modern approach to risk management that helps businesses improve their security and avoid loss before it happens.”
Pretti Rathi, general partner at Icon Ventures, has joined At-Bay’s board of directors. Rathi has a strong track record with early-stage technologies, both as a venture capitalist and an operator.
“What this team has been able to achieve in less than five years is truly astonishing,” Rathi said. “Not only has At-Bay quickly emerged as a leader in the industry, but they’ve also redefined the role of security within the cyber insurance space. We look forward to being part of At-Bay’s journey.”
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The new funding round represents just the latest milestone in At-Bay’s growth. The company recently surpassed $169 million in annual recurring revenue, and saw year-over-year premium growth of 800%. The company is also outperforming the cyber insurance market in terms of risk mitigation, maintaining a ransomware claims frequency seven times lower than the industry average.
“At-Bay continues to prove itself as an innovator in cyber insurance,” said Yoni Cheifetz, partner at Lightspeed Ventures and At-Bay board member. “We believe in At-Bay’s vision of challenging industry conventions and reimagining ways to access cyber risk, which is why we have supported the company every step of the way.”
“The cyber insurance industry is currently facing an unprecedented ransomware crisis,” said Roman Itksovich, co-founder and chief risk officer of At-Bay. “At-Bay has been actively working since inception to be able to adapt and manage these types of risks. Our combination of technical underwriting and active risk monitoring is what keeps us ahead of the curve.”
At-Bay will use the new funding to continue to invest in innovation, launch new products and expand into new markets. The company said it would also continue growing its team.