Coalition, a San Francisco-based startup that combines cyber insurance and proactive cybersecurity tools, is gearing up to expand outside of the US for the first time after a $250 million mega-investment in Series F brings its valuation to $5 billion.
The investment, backed by Allianz X, Valor Equity Partners and Kinetic Partners, comes less than a year after the company’s $205 million Series E raise in September, which valued the company at $3.5 billion. Since then, the company has more than tripled its customer base, from 52,000 to 160,000, Joshua Motta, CEO and co-founder of Coalition, tells londonbusinessblog.com, and has seen revenue growth grow by nearly 200%.
This, Motta says, is a result of the booming cyber insurance market. While many in the cybersecurity industry are beginning to feel the effects of the economic storm, the cyber insurance market grew by an estimated $7.5 billion in 2021 and is expected to continue growing at a 25% year-over-year rate. Coalition, which sees AIG, Beazley and Hiscox as their biggest competitors, tells londonbusinessblog.com that it remains “one of the largest providers” in the market thanks to its “unique combination” of technology, data and insurance.
“This expertise enabled Coalition to build a strategic insurance advantage by actively analyzing data collected through public web scans, infosec capabilities, and through our own claims and incident tracking,” Motta told londonbusinessblog.com. “We use all this data not only to select better risks, but also to help detect and prevent cyber threats to our policyholders.”
As a result of the startup’s recent growth and a recent partnership with international financial services firm Allianz, Coalition tells londonbusinessblog.com that it plans to offer its cyber insurance policies in the UK for the first time since its founding in 2017. only available in the US and Canada.
“This funding will be critical to strengthening our international presence and reaching more communities with our tools,” said Motta, adding that the company will also use the $250 million investment to hire and retain talent.
However, Motta wouldn’t insist on whether this will be the company’s last raise before Coalition plots its exit, despite londonbusinessblog.com already telling in September that the Series E raise could be the last round of funding before the startup prepares. to go to the stock market.