Coalition, a San Francisco-based cyber insurance agency for small and midsize businesses, said it has closed a $40 million funding round. Ribbit Capital led the investment with participation from Greenoaks Capital and Hillhouse Capital.
With this new funding, Coalition said it will expand its global, internet-scale data platform, which analyzes hundreds of millions of data points to assess organizations’ risk within minutes. Coalition said it will scale its global platform to provide cybersecurity risk management tools to any organization for free.
In addition to cyber security tools and incident response services, Coalition also offers cyber and technology insurance coverage up to $10 million that is backed by Swiss Re Corporate Solutions and Argo Group in all 50 states and the District of Columbia.
Coalition vows to change the way businesses manage cyber risk through its platform that underwrites risk “based on the real time indicators that an attacker would use and a real capability to assist during a claim.”
According to Joshua Motta, CEO and co-founder at Coalition, cyber losses cost the global economy an estimated $1.5 trillion each year, forcing thousands of small land medium-sized business to close their doors after experiencing a security failure. “Outdated approaches to cybersecurity aren’t working,” he said. “While companies can’t eliminate cyber risk, they can eliminate the cost of it.”
The new investment will also be used to expand Coalition’s engineering and incident response team over the next year.
“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.
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