The recent slowdown in cybersecurity funding apparently is not affecting San Francisco-based Coalition.
The cyber insurance startup closed a $250 million round at a $5 billion valuation. The new cash comes less than a year after Coalition raised a $205 million Series E at a $3.5 billion-plus valuation.
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In fact, since March of last year, Coalition’s valuation has nearly tripled.
The new money comes as Coalition has increased revenue nearly 200% from the prior year, and has exceeded $775 million in run rate gross written premiums, according to the company.
Cyber insurance grows
The growth is not completely unexpected, as cyber insurance has been an expanding market segment for years with companies big and small looking to protect themselves from ransomware attacks and bad actors. The escalation in such attacks through the past few years has only increased the need for companies to look for insurance protection.
“Many organizations remain unprotected in the face of rising digital threats, and neither traditional insurance nor cybersecurity alone is well equipped to help them,” said Joshua Motta, CEO and co-founder.
Coalition is not alone in the cyber insurance field. Other startups such as Boston-based Corvus Insurance and Pleasanton, California-based insurtech startup Cowbell Cyber also have raised money. Some large insurance companies have started to offer their own cyber products.
Coalition’s “active insurance” encompasses cybersecurity tools, digital forensics, incident response and insurance coverage to help protect its more than 160,000 customers.
The company partners with insurance brokers to provide its insurance products in the U.S. and Canada. Later this year it will launch its U.K. active cyber program in partnership with Allianz, as announced last week.
The new round included participation from Allianz X, Valor Equity Partners, Kinetic Partners and other existing investors, the company said in a release.
Founded in 2017, Coalition has raised $755 million, per the company.
llustration: Dom Guzman
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