Insurtech startup Coalition raises $90M in Series C funding to provide cyber insurance and help businesses manage and mitigate cyber risks
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. Enter Coalition, a San Francisco-based insurtech startup that 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.
Today, Coalition 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. The round, which brings the total raised in equity funding to $125 million, was led by 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.
Founded in 2017 by John Hering and Joshua Motta, Coalition is a cyber insurance and security startup that combines comprehensive insurance and proprietary security tools to help businesses manage and mitigate cyber risk. Backed by A+/A rated insurers Swiss Re Corporate Solutions and Argo Group, Coalition provides companies with up to $10M of cyber and technology insurance coverage in all 50 states and the District of Columbia.
The company’s apps platform provide automated alerts, threat intelligence, expert guidance, and recommendations, benchmarking and ongoing monitoring tools to help businesses remain resilient in the face of cyber risk.
“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.”
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.”