(Image credit: Gerd Altmann.)
Arceo.ai, a San Francisco-based provider of a cyber risk analytics and insurance platform, today announced it has secured $37 million in overall funding. The funding was led by Lightspeed Venture Partners (Menlo Park, Calif.) and Founders Fund (San Francisco) with participation from CRV (San Francisco) and UL Ventures(San Diego). In addition, Hemant Shah, founder and former CEO of catastrophe risk modeling company RMS (Boston), has joined Arceo’s Board of Directors. The funding follows the patenting of Arceo’s ability to blend cybersecurity data with innovative underwriting strategies. Founded in 2016, the company aims to enable insurers to scale their cyber line of business using curated security data for accuracy, AI for advanced risk assessment, and workflow automation for efficiency.
Addressing the protean nature of cyber perils, Arceo reports that it has developed the ability to translate raw security data into insurance knowledge. The vendor says that it accomplishes that feat by analyzing an individual enterprise’s security posture as well as the macro cyber risk trends. Arceo says it keeps these translations current in a dynamic threat environment.
Despite forecasted worldwide security spending to exceed $124 billion, continued high profile breaches show spending on security technology does not guarantee protection. Insurance is becoming a key part of many enterprises’ security and risk management measures, and that demand implies the need drive a renewed approach to cyber risk management that includes data-driven insurance policies to effectively transfer this fluid risk, an Arceo statement asserts.
“We founded Arceo to create a new framework to solve cyber risk. By blending cybersecurity, threat intelligence, and insurance into one platform, we believe we can unlock new solutions to make companies quantifiably more secure,” comments Vishaal Hariprasad, CEO, Arceo.ai. “Our company’s name in Latin means ‘clearly seeing risks ahead of you.’ Our platform will enable companies to effectively mitigate the constant threat of cyber attacks.”
“Arceo’s founders bring a unique set of enterprise and military expertise to tackle an increasingly global threat—cybersecurity,” comments Arif Janmohamed, partner, Lightspeed Venture Partners. “Addressing the security risks that organizations face today needs the kind of defense mindset and technology expertise that the Arceo team is bringing to the market to deliver a modern and end-to-end cyber insurance platform.”
“Assessing risk in the security world is not about looking at a single point in time; there needs to be a constant examination that informs insurers and their clients about emerging risks,” opines Trae Stephens, Partner, Founders Fund. “Fortunately, the data that Arceo is analyzing gives insurers and their clients the opportunity to proactively prepare for incidents through risk mitigation and risk transfer.”
“Insurance providers and enterprises need to incorporate best practices to evaluate and measure cyber risks,” says Ravi Mulugu, Senior Investment Director at UL Ventures. “We are thrilled to be partnering with Arceo, lending UL’s expertise to improve cybersecurity assessment for the insurance market.”