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The 4-year-old San Francisco-based company, which now has raised $300 million in funding, will look to add new insurance products — possibly around intellectual property — and expand internationally with the added funds, said co-founder and CEO Joshua Motta. General Atlantic also participated in the recent round.
“It’s very clear to us the market opportunity is tremendous,” Motta said. “Cybersecurity insurance is widely recognized as one of the greatest opportunities in commercial insurance.”
Investors also are clearly seeing that opportunity. Last Wednesday, Boston-based Corvus Insurance announced a $100 million Series C at a $750 million valuation. That was followed the next day by Pleasanton, California-based insurtech startup Cowbell Cyber raising a $20 million Series A.
Not just a technology problem
Founded in 2017, Coalition offers cyber insurance policies in both the U.S. and Canada. A typical policy with a $1 million limit normally would cost around $3,000 annually for a company, Motta said. The company offers policies with limits up to $15 million in the U.S. It also offers cybersecurity software tools on a freemium model for both policyholders and non-policyholders.
Coalition now has a gross written premium run-rate of more than $240 million and 41,000-plus customers. That growth comes from a better understanding of cybersecurity insurance and its need, Motta said.
“There is a realization that cybersecurity isn’t just a technology issue — or not a technology issue at all” Motta said. “It is a risk management issue.”
Shardul Shah, a partner at Index Ventures, called the cyber insurance industry “15 years young,” as it has been around for a while but is still emerging and maturing in many ways, with both insurtech startups and large insurance incumbents competing for traction. As Coalition expands its products and market footprint, Shah said he has no doubt what it can become in the future.
“What we are setting out to do is build an enduring company,” he said.
Illustration: Dom Guzman