Coalition, a San Francisco, California-based cyber insurance company for small and midsize businesses, as per recent reports last week, has just closed a $40 million funding round. The funding round was led by Ribbit Capital, a Silicon Valley-based venture capital firm, and was participated by Greenoaks Capital and Hillhouse Capital.
Coalition, which has an extensive A+/A rated insurers Swiss Re Corporate Solutions and Argo Group’s support provides up to $10 million cyber and technology insurance coverage in all 50 states and the District of Columbia in the US. The company’s cyber risk management platform is apt at providing automated security alerts, threat intelligence, expert guidance, and cybersecurity tools to ensure businesses remain resilient in the face of cyber attacks.
“Cyber losses cost the global economy an estimated $1.5 trillion each year, forcing thousands of SMBs to close their doors after experiencing a security failure,” stated Joshua Motta, CEO, and Co-Founder at Coalition. “Outdated approaches to cybersecurity aren’t working. While companies can’t eliminate cyber risk, they can eliminate the cost of it.”
With this new funding, Coalition aims to hire new professionals, tripling its engineering and incident response team over the next coming year. The company also recently announced appointing Leon Rishniw as Head of Engineering. Leon, having led engineering teams at Expanse and Cloudmark, has a breadth of cybersecurity expertise that he can offer.
“The cybersecurity industry is massive, at over $100 billion in revenue, yet security providers fail to eliminate breaches on behalf of their clients. By contrast, the cyber insurance industry, which actually shares the incentives of its customers to prevent breaches, is only $4 billion today. The relative size of these two markets should be inverted,” mentioned Nick Shalek, General Partner at Ribbit Capital. “Coalition has the strongest team to change the way businesses manage cyber risk having built an unrivaled intelligence platform to underwrite risk based on the real-time indicators that an attacker would use, and a real capability to assist during a claim.”