Cowbell, a foremost entity in the realm of cyber insurance tailored for small- and medium-sized enterprises (SMEs), has made headlines with its announcement of substantial growth momentum and a $25m investment.
This development follows the company’s most profitable quarter and underscores its consistent corporate expansion. So far, Cowbell has amassed a commendable $148m in funding.
The fresh investment was spearheaded by Prosperity7 Ventures and saw active participation from a mix of new and existing backers.
Impressively, Cowbell has expanded its customer base by 49% in 2023, compared to the previous year. Moreover, the company’s trajectory towards profitable growth has been promising, as evidenced by its 43% ultimate loss ratio recorded in 2022.
Recent studies have shed light on the alarming fact that 72% of SMEs, who currently lack cyber insurance, believe that a significant cyberattack could obliterate their business. Addressing this pressing concern, Cowbell has effectively bridged the insurability chasm for this pivotal market. In 2022, the company achieved a 2.5x surge in premiums, thereby safeguarding SMEs against the constantly evolving landscape of cyber threats.
Enhancing its global presence, Cowbell has inaugurated its operations in the UK market, introducing Prime One for UK SMEs. The company’s standout features, such as its integrated technology platform grounded in AI, and a continuously monitored risk pool encompassing 38 million businesses from the US and UK, have set it apart from competitors. Highlighting the indispensable nature of robust cyber insurance policies for SMEs, Cowbell’s dedicated service, Cowbell 365, has thwarted ransom threats in 74% of instances and curtailed ransom payments to a mere 26% of the initial demand.
Prosperity7 Ventures’ Investment Principal, Chris Zhong said, “Economic costs of cybercrime will reach $24T by 2027, accelerating cyber insurance adoption and growth even further. We are investing in Cowbell’s strengths – its people, culture and unit economics. Prosperity7 is excited to partner with Cowbell on their path to profitable growth and near-term operating profitability as the company further cements its leadership in global SME markets.”
Cowbell’s Founder and CEO, Jack Kudale, commented, “Momentum and policyholder growth is strong, with record renewal retention. We just closed our largest quarter to-date on the strength of omnichannel distribution, and with a focus on servicing our broker partners and policyholders. With this new investment, we will deepen our focus on serving our chosen markets in the US and UK. This milestone is a testament to our expertise, culture, and market leadership.”
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