Coalition raises $175 million

San Francisco-based cyber insurance and security company Coalition has raised $175 million in a Series D round at a valuation of $1.75 billion, bringing its total funding to $315 million. The round was led by Index Ventures with participation from General Atlantic and the company’s existing investors.

Founded in 2017 and backed by Swiss Re and Arch Insurance, Coalition serves over 42,000 customers, providing cybersecurity tools alongside cyber insurance coverage.

The news follows two recent investments in cyber insurance companies. Last week, Boston-based Corvus Insurance, a commercial insurance MGA with a focus on cyber insurance, closed a $100 million Series C round, while San Francisco-based Cowbell Cyber closed a $20 million Series A round.

In a Crunchbase article, Corvus reported that its average policy size is $9,000 annually and that it grew its gross written premium 250% last year and exited January at a $120 million annual premium run rate. Rough math suggests Corvus has a user base of low ten-thousands. The other thing to note is that in April of last year, Coalition filed an intellectual property complaint against three former employees who are the current co-founders of Apollo Brokers , a digital wholesaler, offering “a faster, better, cheaper way for retail brokers to get commercial insurance.”

“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. Nearly one in ten Fortune 500 companies is an insurance company, yet most were founded before World War II. 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.” – Joshua Motta, CEO and co-founder of Coalition.

“Coalition is the clear leader in this space and we’re excited to support their vision to reimagine commercial insurance. Not only does Coalition provide peace of mind after a loss, but also peace from mind: their risk management platform, predictive analytics, and incident response services help organizations decisively and affirmatively remain resilient to risk.” –  Shardul Shah, Partner at Index Ventures.

“Despite a surge in cyber attacks and ransomware, Coalition has delivered industry-leading loss performance by leveraging differentiated technology across the policy lifecycle. We’re excited by the innovation that Coalition is driving in cyber insurance.” – Paul Stamas, Managing Director and Global Co-Head of Financial Services at General Atlantic.