(Image source: Coalition website.)
Coalition, a company combining cyber security solutions and cyber insurance, has announced that it has raised $175 million to accelerate its growth and expand globally. Index Ventures (San Francisco/London) led the funding with participation from General Atlantic (New York) and the company’s existing investors, valuing Coalition at $1.75 billion.
“We founded Coalition four years ago with a mission to solve cyber risk, introducing a technology-led approach to risk management and insurance underwriting, pricing, and distribution,” comments Joshua Motta, CEO and co-founder, Coalition. “Our ambitions now extend beyond cyber insurance. Nearly one in ten Fortune 500 companies is an insurance company, yet most were founded before World War II. With this funding, we plan to bring our technology-driven approach to other lines of commercial insurance as we seek to build the digital insurance company of the future.”
Coalition reports that it plans to invest in three major areas, as it describes below:
- Build the digital insurance company of the future. “The future of insurance will be defined by technology, and we will continue to invest in building a leading technology company focused on innovation across all aspects of the insurance value chain,” comments Motta.
- Expand to new product lines.Following its growth in cyber and technology insurance, Coalition plans to launch new insurance products to address a range of risks facing the modern enterprise, many of which are not well covered by standard business insurance policies.
- International expansion.Following its expansion into Canada in 2020, Coalition plans to expand its offerings into multiple new international markets.
“Coalition is the clear leader in this space and we’re excited to support their vision to reimagine commercial insurance,” comments Shardul Shah, Partner, Index Ventures. “Not only does Coalition provide peace of mind after a loss, but also peace from mind: their risk management platform, predictive analytics, and incident response services help organizations decisively and affirmatively remain resilient to risk.”
“Despite a surge in cyber attacks and ransomware, Coalition has delivered industry-leading loss performance by leveraging differentiated technology across the policy lifecycle,” comments Paul Stamas, Managing Director and Global Co-Head of Financial Services at General Atlantic. “We’re excited by the innovation that Coalition is driving in cyber insurance.”
Coalition has raised $300 million in equity funding from global technology investors, including Index Ventures, General Atlantic, Ribbit Capital, Vy Capital, Hillhouse Capital, and Valor Equity Partners, among others.
Founded in 2017 by Joshua Motta and John Hering, Coalition serves over 42,000 customers, providing no-cost cybersecurity tools to prevent losses, security and incident response services to contain them, and comprehensive insurance to help organizations recover from failures and breaches. The investment follows long-term capacity commitments from leading global insurers Swiss Re and Arch Insurance.