Palo Alto VC Ribbit Capital has led a $40m funding round for cyber insurance platform Coalition.
Ribbit – which was a previous investor in the business – was joined in the new round by Greenoaks Capital and Hillhouse Capital.
Coalition offers cyber insurance products which are supported by global insurers Swiss Re Corporate Solutions and Argo Group. The company provides both insurance and cybersecurity products to SMBs, helping to protect a company from risk and loss.
The start-up will use the new funding to expand its global data platform and intends to scale the platform to provide cybersecurity risk management tools to organisations for free.
Coalition will also use the investment to triple the headcount of its engineering and incident response team over the next year.
“The cyber security industry is massive, at over $100 billion in revenue, yet security providers fail to eliminate breaches on behalf of their clients,” said Ribbit general partner Nick Shalek. “By contrast, the cyber insurance industry, which actually shares the incentives of its customers to prevent breaches, is only $4 billion today. The relative size of these two markets should be inverted.
“Coalition has the strongest team to change the way businesses manage cyber risk having built an unrivaled intelligence platform to underwrite risk based on the real time indicators that an attacker would use, and a real capability to assist during a claim.”
In March last year, the company raised $10m in its Series A round from investors including Vy Capital and Valor Equity Partners.