Coalition, a Cybersecurity Insurance company, recently announced that they have raised $175M to accelerate its rapid growth and global expansion. The fund was raised in the final round of funding that was led by Index Ventures. With the explosion witnessed in cybercrime and hacking in the past couple of years, especially due to the pandemic, this news is being viewed as a welcome move. Coalition previously raised around $140M and with the current funding the valuation sums up to $1.75 billion.
The foundation of Coalition was laid in 2017. The company focuses on the insurance realm that protects businesses against damages, but it also offers a wide range of cybersecurity tools that includes credential monitoring, patch management, endpoint detection and response (EDR), automated security alerts, threat intelligence, expert guidance and many more. The insurance covers up to $15M which includes financial, tangible, and intangible losses.
While other insurance companies assist after the claim is reported, Coalition works proactively with the clients to prevent the cyber breach from happening in the first place. Furthermore, they even contain the damage when it happens. This is what makes Coalition different and better from others. The risk management platform offered by the company collects and analyzes the data from every internet-enabled device within the organization. The assets are then assessed to identify potential vulnerabilities and the policyholders are alerted accordingly.
The high degree of accuracy offered by this platform predicts the risk of an organization’s cybersecurity system. It covers all the severity from ransomware to social engineering. With the raised money, the company plans on launching several new insurance products that can address a greater range of risks that modern enterprises are more likely to face. These products will cover the losses that are ideally not covered by standard business policies.
Organizations these days derive a majority of their value from intangible assets like the intelligence of their resource, data, intellectual property, and others. It is where cybersecurity insurance products can come in handy as they include cyber and management liability. In the future, Coalition plans on continuing its innovation in this space. They aim to utilize the same technology-driven underwriting approach in cyber to underwrite a wider set of risks that modern enterprises face or may come across.