Elpha Secure raises $20 million

Elpha Secure, “the first cyber insurance startup to combine proprietary cybersecurity software with coverage to improve risk transfer,” has completed a $20 million Series A funding round led by Canapi Ventures, with participation from Stone Point Ventures, AXIS Capital, State Farm Ventures, The Hartford STAG Ventures, Fermat Capital Management, and EOS Venture Partners.

Founded in 2018, the NY-based startup provides a cyber protection solution for small and midsize businesses that combines cybersecurity technology with insurance policies. The cyber insurance product is backed by AXIS Surplus Insurance Company and Everest Indemnity Insurance Company.

“We are humbled by the great investors supporting Elpha Secure and we are thrilled to welcome Canapi as a new partner. Digital threats are growing in variety, frequency, and intensity, so cyber insurance is becoming indispensable. Yet, smaller businesses are finding they don’t have adequate cyber infrastructure to qualify for insurance. Instead of challenging business owners to define and implement the required cybersecurity measures themselves, we provide these measures through our software as well as the insurance policy. We’re only just getting started, and we look forward to expanding our reach and serving even more businesses in need in the years to come.” – Preetam Dutta, CEO of Elpha Secure.

“Today’s small and midsized businesses are not only at a greater risk than ever of suffering a cyberattack, but they also face significant hurdles when it comes to acquiring cyber insurance policies. By embedding security controls directly into their policies, Elpha Secure removes the friction associated with acquiring a cyber insurance policy, while simultaneously controlling loss ratios for their carrier partners. In offering an unprecedented solution that newly combines both cyber protection software and insurance, Elpha Secure greatly reduces the cyber risks in the system for all. We’re so excited to be leading this Series A and look forward to helping fuel the company’s growth into the future.” – Jeffrey Reitman, partner at Canapi Ventures.

“As a specialist insurer and reinsurer with a leading cyber practice, we at AXIS recognize the dynamism of the digital risk landscape and the importance of risk mitigation against this backdrop. Elpha Secure’s innovation in monitoring, reducing, and managing risk throughout the life of an insurance policy aims to improve an insured’s risk profile, ultimately delivering better experiences and outcomes for all stakeholders.” – Linda Ventresca, head of digital at AXIS Capital.