Coalition, a San Francisco-based cybersecurity insurance company, has raised $ 205 million in Series E funding, valuing the pre-IPO company at more than $ 3.5 billion. The round was co-led by Durable Capital, T. Rowe Price and Whale Rock Capital, with input from the company’s existing investors.
Coalition provides businesses with cybersecurity tools and insurance to help manage and mitigate cyber risk to more than 50,000 customers, doubling its customer base in the past year. It also saw a gross written premium execution rate of over $ 240 million, an 800% increase from the previous year because, according to TechCrunch, the company said its focus on insurance underwriting technology is proving to be a model of risk management. The company said its policyholders experience less than a third of the frequency of claims compared to other cyber insurance companies.
“This is a radically different approach and it works because we are setting a new standard for an industry that has been slow to unleash the full power of data,” said Joshua Motta, co-founder and CEO of Coalition, at TechCrunch. “The pandemic has shown that cyber risk is no longer a purely digital risk. Increasingly, a company’s industrial processes are controlled by computers, which means they are at risk of attack.
“The Coalition’s policy is unique in that it covers all of the physical damage that can result from a cyber attack, as well as the financial and immaterial damage that a business can suffer,” he added.
The pandemic and the massive increase in cyber attacks that followed has also been a major growth engine for the company. This led to Motta being invited to the White House for a recent meeting on cybersecurity policy.
Coalition said it will use the new round of funding – bringing the total amount raised to more than $ 500 million – to expand into new lines of insurance, fuel its expansion into new markets and increase its workforce. ; the startup currently has 265 employees, and is on track to increase that number to 315 employees by the end of the year.
Coalition also tells TechCrunch that it could be its last round of funding before the startup prepares to go public.
“Those [investors] all of them have an impressive track record of investing in long-term value creators in public markets, ”said Motta. “We certainly see Coalition going down this path, but we will make future decisions based on what is best for our customers and partners in an ever-changing market environment. “