Coalition , an cybersecurity insurance company with headquarters in San Francisco, has raised $205 million in Series E fundraising, valuing the pre-IPO business at over $3.5 billion. Durable Capital , T. Rowe Price, and Whale Rock Capital jointly led the round, which also included previous investors in the business.
With more than 50,000 customers, Coalition has more than doubled its customer base in the previous year by providing businesses with cybersecurity tools and insurance to assist manage and reduce cyber risk. Because its tech-first approach to insurance underwriting is proving to be a more effective model of risk management, the business tells TechCrunch, it has also witnessed a gross written premium run-rate of more than $240 million, an 800% rise over the previous year. In comparison to other cyber insurance providers, the firm claims its policyholders file claims less frequently—less than one-third as frequently.
According to Joshua Motta, co-founder and CEO of Coalitions, “This is a radically different approach that is working as we set a new standard for an industry that has been slow to unleash the full power of data.” The epidemic demonstrated that cyber danger is no longer a risk that only exists online. Industrial operations are increasingly being managed by computers, putting them at danger of assault.
According to him, the Coalition’s policy is exceptional in that it covers the whole range of material losses that can come from a cyberattack in addition to the monetary and non-tangible losses that a business may encounter.
The pandemic and the sharp rise in cyberattacks that followed it have both been significant growth drivers for the business. As a result, Motta received an invitation to a recent cybersecurity policy meeting at the White House.
The startup Coalition currently has 265 employees, and it plans to grow that to 315 by the end of the year. Coalition said it will use the new funding round, which brings the total amount it has raised to more than $500 million, to expand into new insurance lines, fuel its expansion into new markets, and increase its headcount.
Additionally, Coalition told TechCrunch that before the business plans to go public, this fundraising round may be its last.
According to Motta, all of these “investors” have a strong track record of financing long-term value producers on the stock market. We do see Coalition going down that road, but as the market changes, we’ll base our future decisions on what’s best for our partners and customers.
