Existing investor Valor Equity Partners led Series C round; largest ever cyber insurance funding round
SAN FRANCISCO — May 20, 2020 — Coalition, the leading cyber insurance and security company, today announced it has raised $90 million in equity capital to fuel its mission to solve cyber risk, and support its rapid growth and global expansion. Valor Equity Partners led the funding with participation from Felicis Ventures, Greyhound Capital, and Coalition’s existing investors.
The investment comes as the company’s customer base crosses 25,000 — a 600% increase from the prior year — making it one of the largest providers of cyber insurance and security in the United States. Coalition’s unique product offerings combine best-in-class insurance and proactive cybersecurity tools to help keep businesses safe. Cyber losses cost the global economy upwards of $1.5 trillion each year, and yet the majority of businesses are under-insured and under-prepared to manage and mitigate the risks of an increasingly digital world. Coalition is addressing this gap by providing no-cost cybersecurity tools to prevent losses, security and incident response services to contain them, and comprehensive cyber insurance to help organizations recover from failures and breaches.
“Cybersecurity isn’t a technology problem, it’s a risk management problem,” said Joshua Motta, Founder and CEO of Coalition. “Traditional cybersecurity technology such as firewalls and antivirus were designed to protect networks, not businesses. Coalition protects an entire business by offering cybersecurity-as-a-service without any additional hardware or software, security and incident response services, and comprehensive insurance cover of up to $15 million.”
The announced funding will help Coalition target three key areas:
Cybersecurity Access: once accessible only to national governments and large enterprises, Coalition will continue to make available, at no cost, state-of-the-art cybersecurity capabilities to small and midsize businesses. Coalition’s small and midsize policyholders experienced claims that cost an average of $160,000 — an expense that few businesses can afford to bear. “Businesses need more protection than traditional insurers can offer, including help preventing incidents from happening in the first place, and support during and after a crisis,” said Vivek Pattipati, Partner at Valor Equity Partners. “We believe Coalition will be as disruptive to the cybersecurity industry as it has been to the insurance industry.”
International Expansion: cyber risks know no boundaries, and Coalition plans to make its offerings available globally starting with Canada. “As the entire world becomes increasingly digital, Coalition has a tremendous opportunity to address the real risks that cyber poses across many markets,” said Pogos Saiadian, Partner at Greyhound Capital.
New Products: Coalition plans to develop additional insurance products to address a new range of threats technology brings to both tangible and intangible assets — many of which are not well covered by traditional insurance policies. “The future of cyber insurance is in integrated solutions to protect against cyber incidents across all asset types,” said Sundeep Peechu, Managing Director at Felicis Ventures. “Coalition is uniquely positioned to challenge the status quo of insurance by unraveling the complexity of modeling and pricing cyber as a peril.”
Antonio Gracias, Founder and CEO of Valor Equity Partners said: “We view Coalition as a category-defining company that is fundamentally changing the way organizations engage with insurance. Coalition is one of the fastest growing insurance technology companies despite raising a fraction of the capital of its peers.”
In total, Coalition has raised $125 million in equity funding from investors, including Vy Capital, Ribbit Capital, Hillhouse Capital, Valor Equity Partners, and Greenoaks Capital, among others. All existing investors participated in Coalition’s latest round of funding.
To learn more about Coalition, visit coalitioninc.com.
Coalition is the leading provider of cyber insurance and security, combining comprehensive insurance and proactive cybersecurity tools to help businesses manage and mitigate cyber risk. Backed by leading global insurers Swiss Re Corporate Solutions, Lloyd’s of London, and Argo Group, Coalition provides companies with up to USD $15 million of cyber and technology insurance coverage in all 50 states and the District of Columbia, as well as CAD $20M of coverage across all 10 provinces in Canada. Coalition’s cyber risk management platform provides automated security alerts, threat intelligence, expert guidance, and cybersecurity tools to help businesses remain resilient in the face of cyber attacks. Headquartered in San Francisco, Coalition has presences in New York, Los Angeles, Chicago, Dallas, Washington DC, Miami, Atlanta, Denver, Austin, and now Vancouver and Toronto.