California-based At-Bay, a digital cyber risk monitoring and insurance firm, reports it raised $13 million in Series A funding, bringing the start-up’s total funding to $19 million.
At-Bay is developing what it calls a “proactive cyber security monitoring service” and related insurance products. Its insurance policies are backed by the Hartford Steam Boiler Inspection and Insurance Co. (HSB), a part of Munich Re.
The new funding round was co-led by Keith Rabois of Khosla Ventures, Yoni Cheifetz of Lightspeed, and Shlomo Kramer. Kramer, former founder of Check Point and Imperva, as well as CEO of Cato Networks, will join the board. At-Bay was started in 2016.
“Cyber insurance is one of the fastest growing and complex markets, yet the incumbents are still currently relying on standardized checklists and irrelevant actuarial data to model risk. At-Bay is focusing on customized and real-time risk modeling and risk reduction for its customers which unlocks superior pricing and coverage options for them,” said Keith Rabois, general investment partner at Khosla Ventures.
Cyber risk is always evolving and is at odds with the traditional insurance model, according to At-Bay, which says its cyber security research and modeling approach predicts future risks based on emerging threats. The company says its scans for new vulnerabilities enable its customers to close security holes quickly and avoid loss.
At-Bay’s risk management products include a Security Score and Data Breach Cost Calculator.
The Security Score allows customers to automatically scan their technology, benchmark their security, and understand their top vulnerabilities. The Data Breach Cost Calculator allows risk managers to model loss scenarios and understand potential financial exposure.
“Insurance has a key role to play in managing cyber risk, which requires a shift from traditional snapshot underwriting to a year-round risk management partnership,” said Rotem Iram, CEO and founder, At-Bay.
Iram says the proactive approach provides a better view of future risks than the traditional modeling methods used by insurers, which are more reactive in nature. At-Bay also uses the data produced by its algorithms to help businesses identify ways of improving their cybersecurity, therefore lowering their risk and costs.
At-Bay is headquartered in Mountain View, California, and has an R&D center in Tel Aviv.
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