Coalition is a cybersecurity and insurance startup company that helps companies manage and mitigate cyber risks for business accounts. The startup company was founded in 2017 by Joshua Motta and John Hering with the idea of protecting sensitive and private data in business accounts from cyberattacks and technology failures. According to business, $120 billion is spent annually on cybersecurity defenses, but cybercrime alone has cost organizations more than $1.5 trillion per year.
Joshua Motta, CEO and co-founder of Coalition, said, “It’s very clear to us the market opportunity is tremendous...Cybersecurity insurance is widely recognized as one of the greatest opportunities in commercial insurance.”
Coalition claims it has more than 10,000 customers and has insured more than $12 billion of their risk. The cyber insurance startup services a variety of industries, including healthcare, real estate, energy, cryptocurrency, ecommerce, technology, and several others. In addition, the startup company states it has been able to recover 60% of funds lost for policyholders. Furthermore, Motta claims the cybersecurity and insurance business provides up to $15 million of insurance for American companies and $20 million CAD ($16.04 million USD).
To date, the cybersecurity business has raised $315 million in funding from several investors across a handful of funding rounds. Today, Coalition announced that its latest $175 million funding round was its largest funding round yet.
$1.75 Billion Valuation
This financing round gives the cybersecurity startup company a valuation of $1.75 billion, with Index Ventures as the lead investor.
Motta said in a press release, “We founded Coalition four years ago with a mission to solve cyber risk, introducing a technology-led approach to risk management and insurance underwriting, pricing, and distribution...Our ambitions now extend beyond cyber insurance...With this funding, we plan to bring our technology-driven approach to other lines of commercial insurance as we seek to build the digital insurance company of the future.”
With this new funding, the cyber insurance and security business will be focusing on three areas: improving and building upon technology, expanding new product lines, and overseas expansion.
Shardul Shah, a partner at Index Ventures, added, “Coalition is the clear leader in this space and we’re excited to support their vision to reimagine commercial insurance.”
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.