Coalition raises mega round to tackle spiking cyber attacks

The news: The US-based cyber insurance and security company secured a $205 million Series E round at a $3.5 billion valuation, per a press release Insider Intelligence has reviewed. It will use the funds to scale its business and expand into new lines of insurance.

Coalition provides companies across the US and Canada with up to $15 million in cyber and technology insurance coverage.

A snapshot of cybercrime: The rise of cyber attacks highlights the need for comprehensive insurance.

• The COVID-19 outbreak has caused an uptick in sophisticated phishing email schemes.
• Ransomware attacks have become more frequent over the past year: During H1 2021, 93% more attacks were carried out than during the same period last year.
• Globally, companies have also experienced a 29% increase in cyber attacks, with the Europe Middle East and Africa (EMEA) region and the Americas seeing the highest increase.

How Coalition is tackling this problem: Its preventative method enables Coalition to protect companies in advance of an attack, while also mitigating the impact, should one occur.

• The insurtech offers free cybersecurity tools to prevent losses, security and incident response services to contain them, as well as comprehensive insurance to help organizations recover from failures and breaches, per the press release.
• Coalition scans policyholders 65,000 times a week: It aggregates and analyzes the data it obtains from internet-addressable devices within a company to identify and reduce potential vulnerabilities.

Where’s it headed?

• Coalition currently serves over 52,000 customers and its policyholders file one-third fewer claims than those covered by other cyber insurance carriers. It has a $325 million run rate premium, marking an 800% increase YoY.
• Expanding to other lines of insurance will likely maintain Coalition’s momentum by letting it cross-sell to existing clients and onboard new ones.