InsurTech startup Converge raises $15M in Series A funding to redefine cyber insurance

Over the past two decades, the surge in cyber-attacks has been nothing short of alarming, making cyber insurance no longer a luxury but an absolute necessity. In the current digital landscape, cybersecurity has emerged as one of the most pressing concerns for businesses across the globe as the frequency and severity of cyber incidents increase making digital risks more complex, burdensome, and expensive for organizations.

As such, safeguarding sensitive data and protecting against potential cyber threats have become paramount for companies to ensure their continued success and reputation in an increasingly interconnected world. That’s why one insurtech startupConverge Insurance is on a mission to provide effective cyber risk management solutions by making cyber insurance more accessible, affordable, and effective.

Today, Converge announced it has raised $15 million in Series A funding from Forgepoint Capital to address the growing pain points impacting both cyber insurance providers and insurees. In conjunction with the funding, Converge also announced that Forgepoint Managing Directors Don Dixon and Andrew McClure have joined its Board of Directors.

In 2021, a concerning statistic revealed that a staggering 61% of small to medium-sized businesses (SMBs) fell victim to cyberattacks. To make matters worse, a substantial 60% of these SMBs were forced to shut down within a mere six months after the attack took place. The gravity of the situation is exacerbated by the fact that the majority of SMBs lack both cyber insurance and adequate cyber protection. This deficiency often stems from issues like high costs, limited accessibility, and a shortage of IT resources.

In response to this critical need for comprehensive cyber solutions, Converge has emerged as a modern managing general agent (MGA) with an innovative approach. By integrating cyber insurance, security, and cutting-edge technology, Converge seeks to bridge the gap and provide a viable solution. At the heart of their strategy lies a proprietary data ecosystem bolstered by expert underwriting. This combination enables Converge to offer precise and tailored cyber risk solutions, significantly improving outcomes for its customers, particularly for SMBs who are the most vulnerable to cyber threats.

In addition to funding, Converge also announced that Tom Kang has been appointed as CEO of Converge Insurance.

In a statement, Kang said: “Our mission is to empower policyholders with radically transparent cyber insurance so they can manage technology risks more intelligently.”  He also added: “We’re thrilled to partner with the team at Forgepoint Capital, who uniquely understand the needs and opportunities of this burgeoning market. This funding will enable us to expand our outreach and grow our bench of in-house experts while accelerating the availability of the Converge platform worldwide.”

Meanwhile, last week, global insurer QBE North America announced the launch of a cyber insurance program with Converge acting as program administrator. This marks the first of several anticipated partnerships as the company gears up to expand its offerings and reach in the cyber insurance domain.

“Converge is the latest company in our investment strategy to reinvent cyber insurance and risk management,” said Dixon. “We couldn’t be prouder of the seasoned team assembled at Converge and the progress they have achieved in such a short amount of time with their unique cyber underwriting model.” Forgepoint has backed other leading brands in the cyber insurance market, including risk analytics leader CyberCube Analytics, incident response firm Surefire Cyber, and managed security service provider SolCyber. Converge is the third company incubated at Forgepoint to focus on the cyber insurance market.