Elpha Secure Technology, a cyber insurance startup that combines proprietary cybersecurity software with coverage to improve risk transfer, has raised $20m in Series A funding.
Canapi Ventures, a venture capital firm investing in early to growth-stage FinTech companies, led the round.
Elpha Secure’s existing investors also participated, including Stone Point Ventures, AXIS Capital, State Farm Ventures, The Hartford STAG Ventures, Fermat Capital Management, and EOS Venture Partners.
Elpha Secure provides what it calls a “groundbreaking cyber protection solution” for small and midsize businesses that marries proprietary cybersecurity technology with insurance policies.
In a departure from the conventional cyber insurance model, Elpha Secure’s end-to-end, proprietary solution helps customers reduce cybersecurity risk through its unique approach rather than focusing on limiting coverage or raising rates.
As part of the company’s offerings, Elpha Secure’s insureds gain enhanced coverage with a single software installation that brings greater cyber protection through security controls such as encrypted data backups, multi-factor authentication for remote desktop connections, software version control, and machine learning to detect anomalies and advise specific action.
Elpha Secure said the capital will help it to drive business growth across broker networks and evolve its product features to better equip small and midsize businesses to defend against cyberattacks and their consequences with end-to-end protection and response.
Preetam Dutta, CEO of Elpha Secure, said, “Digital threats are growing in variety, frequency, and intensity, so cyber insurance is becoming indispensable.
“Yet, smaller businesses are finding they don’t have adequate cyber infrastructure to qualify for insurance. Instead of challenging business owners to define and implement the required cybersecurity measures themselves, we provide these measures through our software as well as the insurance policy. We’re only just getting started, and we look forward to expanding our reach and serving even more businesses in need in the years to come.”
Earlier this year, Allianz entered into a multi-year partnership with cyber insurance provider Coalition for US and UK cyber insurance programmes.
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