Coalition valued at more than $3.5 billion

Cyber insurance MGA and security company Coalition has raised $205 million. The new funding round was co-led by Durable Capital, T. Rowe Price Associates and Whale Rock Capital, with participation from the company’s existing investors, giving it a valuation of more than $3.5 billion. The new funding comes as Coalition continues to ride a “wave of massive growth” as it crosses $325 million in premium run rate, an 800% increase over the prior year.

Coalition currently serves over 52,000 customers providing no-cost cybersecurity tools to prevent losses, security and incident response services to contain them and insurance to help organizations recover from failures and breaches. Data from the company’s H1 2021 Cyber Insurance Claims Report show that its policyholders experience less than one-third the claim frequency compared to other cyber insurance carriers.

“We are building a new kind of insurance with technology at its core. This is a dramatically different approach and it’s working. Insurers need to do more than analyze cyber risk once a year. We scan our policyholders 65,000 times a week. Our platform aggregates and analyzes data from every internet-addressable device inside a company, scanning a policyholder’s assets to identify potential vulnerabilities so we can help minimize risks. We are setting a new standard for an industry that has been slow to unleash the full power of data, and this has positioned our company for tremendous growth in the digital economy.” – Joshua Motta, CEO and co-founder of Coalition.

“Coalition is solving a critical gap in the cyber risk and insurance space by aligning the right incentives. The team at Coalition has vastly outpaced the industry in its ability to leverage data and capture the lion’s share of tech and the technology-powered insurance market. We believe digital assets will soon be more valuable than physical assets placing Coalition firmly on the path toward long-term sustainable growth and value creation.” – Henry Ellenbogen, CIO of Durable Capital Partners LP.