News: Cyber insurance startup Coalition raises $175 million at $1.75 billion valuation.
OAKLAND, Calif. (Reuters) – Cyber insurance startup Coalition Inc announced on Wednesday that it raised $ 175 million in its most recent funding round. The company is valued at $ 1.75 billion as the need to protect against hacks, ransomware, and data theft has increased with remote work during the pandemic.
The San Francisco-based coalition also uses their technology to assess a customer’s cyber risk. During the life of a policy, potential issues are monitored and customers are notified to prevent violations, said Joshua Motta, co-founder and CEO.
According to Motta, the coalition offers insurance to U.S. companies up to $ 15 million and $ 20 million in Canada, the only two countries it currently operates in.
While cyber insurance can be purchased separately, some insurance companies also offer it as part of a more comprehensive commercial insurance policy.
Last week, Boston-based tech startup Corvus Insurance, whose commercial insurance products include cybersecurity, data and privacy, won $ 100 million in a round led by Insight Partners that was valued at $ 750 million Dollars collected.
According to data firm PitchBook, commercial insurance technology startups hit a record $ 765 million last year, up from $ 655 million in 2019, which was also a record. In his most recent report on the insuranceTechSector told PitchBook that cyber insurance companies could be attractive targets for acquisitions by larger commercial insurance companies to fill a cyber insurance gap in the market.
Motta said the fresh funds will be used to set up new insurance products and expand overseas.
The final round was led by San Francisco and London-based venture capital firm Index Ventures.
Reporting by Jane Lanhee Lee; Adaptation by Leslie Adler
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