SAN FRANCISCO — Coalition, a cyber insurance company for small and midsize businesses, has closed a $40 million funding round. Ribbit Capital led the investment with participation from Greenoaks Capital and Hillhouse Capital.
Backed by A+/A rated insurers Swiss Re Corporate Solutions and Argo Group, Coalition provides companies with up to $10 million of cyber and technology insurance coverage in all 50 states and the District of Columbia. 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.
“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,” said 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 “Outdated approaches to cybersecurity aren’t working.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.”
Coalition will use the new funding to triple its engineering and incident response team over the next year. The company recently appointed Leon Rishniw as Head of Engineering. Leon brings a breadth of cybersecurity expertise, having led engineering teams at Expanse and Cloudmark. He joins security specialists with previous experience in global cyber operations, who spent years countering adversaries as members of the US intelligence community.
“The cyber security 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,” said 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.”
Through Coalition’s comprehensive insurance coverage and cybersecurity tools, organizations receive protection from the entire spectrum of cyber risk, including coverage for network breaches, systems failures, ransomware, business interruption, funds transfer fraud, privacy liability, regulatory fines and penalties, property damage, and more. Coalition’s customers include leading technology companies, investment firms, retailers, banks, manufacturers, non-profits, and healthcare providers.