Coalition, a San Francisco-based cyber insurance and security company, has already been focused on rapid growth. Its new $205 million venture capital financing will help supercharge that strategy even further.
“We are building a new kind of insurance with technology at its core. This is a dramatically different approach and it’s working,” Joshua Motta, CEO and co-founder of Coalition, said in prepared remarks.
Coalition said the investment will help accelerate its plans to scale and also support expansion into new insurance lines. As well, the investment leaves Coalition with a $3.5 billion valuation, the company claims.
Durable Capital, T. Rowe Price Associates, and Whale Rock Capital led the Series E round, with participation from existing investors.
Coalition, an MGA, said it now serves over 52,000 customers, and has long-term capacity commitments from global insurers including Swiss Re, Arch Insurance and Lloyd’s of London, among others. Coalition provides companies with up to $15 million of cyber and technology insurance coverage in all 50 states and the District of Columbia, as well as CAD $20M of coverage across 9 provinces and 3 territories in Canada. Additionally, Coalition’s cyber risk management platform provides automated security alerts, threat intelligence, expert guidance, and cybersecurity tools to help businesses remain resilient in the face of cyber attacks.
“Insurers need to do more than analyze cyber risk once a year. We scan our policyholders 65,000 times a week,” Motta said. “Our platform aggregates and analyzes data from every internet-addressable device inside a company, scanning a policyholder’s assets to identify potential vulnerabilities so we can help minimize risks. We are setting a new standard for an industry that has been slow to unleash the full power of data, and this has positioned our company for tremendous growth in the digital economy.”
Motta and John Hering founded Coalition in 2017.
Including the new round, Coalition has raised over $500 million in equity funding to date. Beyond Durable Capital, T. Rowe Price Associates Inc. and Whale Rock Capital, investors include Index Ventures, General Atlantic, Ribbit Capital, Vy Capital, and Valor Equity Partners, among others.
InsurTechs including Lemonade and Root have typically pursued the public markets after they raise funding levels near what Coalition has achieved, either through an IPO or SPAC/reverse merger transaction. A company spokesperson would not confirm which option will be in play, but acknowledged that public markets are an ultimate goal.
“Our intention is to become a long-term value creator in the public markets,” the spokesperson told Carrier Management via email. “The dynamic nature of the markets means we’ll make decisions on timing based on the best interests of our customers, partners and investors.”