Newly launched At-Bay bags $13m Series A for its cyber insurance platform

May 10, 2018

Newly launched cyber insurance company At-Bay has closed a $13m Series A round co-led by Khosla Ventures and Lightspeed.

Contributions to the round came from Khosla Venture investment partner Keith Rabois, Lightspeed partner Yoni Cheifetz and former founder of Check Point Shlomo Kramer. As part of the transaction, Kramer will join the company’s board.

At-Bay only launched from stealth at the end of last year, alongside a $6m seed round from LightSpeed, Kramer and LocalGlobe. The company offers cyber insurance products as well as insights into a business’ exposure and suggests ways to improve protection.

Insurance products available help protect a business from data breeches, cyber-attacks, financial fraud, extortion, business interruption and media liability. Its insurance policies are all backed by Hartford Steam Boiler Inspection and Insurance Company, a division of Munich Re.

The company creates an automatic security score which scans a business’ technology, rates their protection and identifies their biggest risks. It also implements a data breech cost calculator which gives risk managers the ability to model loss scenarios and understand potential exposures.

This batch of capital will be used to accelerate the development of its cybersecurity monitoring service and launch its insurance products.

Khosla Ventures general investment partner Keith Rabois said, “Cyber insurance is one of the fastest growing and complex markets, yet the incumbents are still currently relying on standardized checklists and irrelevant actuarial data to model risk. At-Bay is focusing on customized and real-time risk modeling and risk reduction for its customers which unlocks superior pricing and coverage options for them.”

Earlier in the year, fellow cyber insurance company Coalition closed its Series A funding round on $10m. The company’s CEO Joshua Motta told FinTech Global that cyber insurance ‘is here to stay’, but it does need more exposure with current offerings not covering enough of the cyber risks.