Cyber insurance startup At-Bay raises $13 million Series A funding co-Led by Khosla Ventures and Lightspeed
With rise in cyber attacks and data breaches, companies are turning to cyber insurance companies to protect them against any liabilities. Cyber insurance is a new type of insurance designed to cover consumers of technology services or products. Specifically, the cyber insurance policies cover a variety of both liability and property losses that may result when a business engages in various electronic activities, such as selling on the Internet or collecting data within its internal electronic network. The estimated market for cyber insurance is expected to reach nearly $17 billion by 2023. One startup is already leading the field.
At-Bay is a cyber insurance startup that provides cyber insurance for the digital age. The company was founded in 2016 with an aspiration to use cyber security expertise to provide insurance products and services that enable companies to innovate despite the recurrent, evolving threat of cyber risk. Today the company announced it has raised a $13 million Series A funding to accelerate development of its proactive cyber security monitoring service and roll out its insurance products.
The round was co-led by Keith Rabois of Khosla Ventures, Yoni Cheifetz of Lightspeed, and Shlomo Kramer. This brings the company’s total funding to $19M. In addition, the company also announced that Shlomo Kramer, former founder of Check Point and Imperva, as well as CEO of Cato Networks, will join the board.
At-Bay is headquartered in Mountain View, CA, and has an R&D center in Tel Aviv. To date, the company has raised $19M in Series A financing and its policies are backed by the Hartford Steam Boiler Inspection and Insurance Company (HSB) a part of insurance giant Munich Re.
“Cyber insurance is one of the fastest growing and complex markets, yet the incumbents are still currently relying on standardized checklists and irrelevant actuarial data to model risk. At-Bay is focusing on customized and real-time risk modeling and risk reduction for its customers which unlocks superior pricing and coverage options for them,” said Keith Rabois, general investment partner at Khosla Ventures.
Cyber risk is always evolving and is at odds with the traditional insurance model. The At-Bay cyber security research and modelling approach predicts future risks based on emerging threats. Scans for new vulnerabilities enable At-Bay’s customers to close security holes quickly and avoid loss. At-Bay partners with sophisticated brokers to deliver security and financial exposure insights to their customers and design a proactive, comprehensive risk management program.
At-Bay’s policies are backed by the Hartford Steam Boiler Inspection and Insurance Company (HSB), a part of insurance giant Munich Re. At-Bay’s Security Score and Data Breach Cost Calculator, available now, are two new important features in their portfolio of risk assessment products that set them apart:
- The Security Score gives customers tools to automatically scan their technology, benchmark their security, and understand their top vulnerabilities.
- The Data Breach Cost Calculator allows risk managers to model loss scenarios and understand potential financial exposure.
“Insurance has a key role to play in managing cyber risk, which requires a shift from traditional snapshot underwriting to a year-round risk management partnership. Leveraging the deep security expertise of our team, we deliver risk insights and control services to our customers throughout the year,” explained Rotem Iram, CEO and Founder, At-Bay.
This proactive approach provides a better view of future risks than the traditional modeling methods used by insurers, which are more reactive in nature. At-Bay also uses the data produced by its algorithms to help businesses identify ways of improving their cybersecurity, therefore lowering their risk and costs.