Cyber Insurance Startup Cowbell Cyber Raises $20 Million Amid Rising Online Threats

By Jemima McEvoy Saturday, March 20, 2021

Cowbell Cyber has raised $20 million in a Series A funding round. The California-based cyber insurance company has benefited from a boost in interest due to a rise in cyberattacks. This cash injection will help grow the business and boost its service to small and medium-sized businesses in need of internet protection.

A businesswoman protecting herself from binary code rain with an umbrella.

What Is Cowbell Cyber?

The startup was founded by Jack Kudale, Rajeev Gupta, Trent Cooksley, and Prab Reddy — a group with decades of experience in business and technology — in 2019, according to the company website. Cowbell Cyber was designed to be the country’s first continuous underwriting platform, creating continuous situation reports for cyber risk so the businesses it serves will always know the level of hazard they face.

Money & Investors

The cyber insurance company has raised a total of $23.6 million for its business to date, according to Crunchbase. Over $3 million of that money was raised by the startup in a September 2019 seed round involving three investors — led by ManchesterStory Group. The $20 million capital, closed in March of this year, the biggest funding round to date for the business. The Series A round was led by Brewer Lane Ventures, with participation from Pivot Investment Partners, Avanta Ventures, and Market Corp. Existing investors ManchesterStory, Tri-Valley Ventures, and Holmes Murphy also joined the round.

The Cyber Insurance Company Looking Ahead

The startup has the benefit of being part of an expanding market. Cyber insurance is a growing industry, with many companies bringing in big fundraising numbers recently. Boston-based Corvus Insurance, for example, just announced a $100 million Series C round for a $750 million valuation, while At-Bay, a San Francisco-based company, pulled in $34 million in a Series C round last December. Coalition, a San Francisco-based company that is likely Cowbell Cyber's biggest competitor (it’s considered to be the largest player in the space), secured $90 million in funding in May.

The cyber insurance startup is also competing against legacy insurers like Liberty Mutual Insurance, Chubb, and AIG, which have also ventured into the cyber policy space.

Final Takeaways

Despite competition from other cyber insurance companies (new and old), Cowbell Cyber believes it could have the upper hand due to its use of AI (artificial intelligence) technology and data science to evaluate and write policies for customers. This startup also benefits from targeting its business toward a particular subset of customers: companies with less than $1 billion in revenue. Cowbell Cyber also now has the money it needs to compete for a slice of the cybersecurity market, which is projected to reach a value as high as $20.4 billion by 2025.

About the Author

Headshot of Jemima McEvoy

Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.

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