Coalition Raises $205M Series E Funding

Coalition Secures $205 Million in Series E Funding

Coalition, a cybersecurity insurance provider headquartered in San Francisco, has successfully completed a $205 million Series E funding round. This new investment elevates the company’s valuation to over $3.5 billion, positioning it as a significant player prior to its anticipated initial public offering (IPO).

Round Details and Investors

The funding round was jointly led by Durable Capital, T. Rowe Price, and Whale Rock Capital. Existing investors also participated, demonstrating continued confidence in Coalition’s growth trajectory.

Rapid Customer and Premium Growth

Coalition currently serves more than 50,000 businesses with its cybersecurity tools and insurance solutions. This represents a doubling of its customer base within the last year.

The company has also experienced substantial financial growth, achieving a gross written premium run-rate exceeding $325 million. This signifies an impressive 800% increase compared to the previous year.

Tech-First Underwriting Approach

Coalition attributes its success to its technology-driven approach to insurance underwriting. This model is proving to be more effective in managing cyber risk than traditional methods.

Policyholders of Coalition experience claim frequencies that are less than one-third of those seen by other cyber insurance carriers.

Addressing Evolving Cyber Risks

“Our approach is fundamentally different, and the results demonstrate that we are establishing a new benchmark for the industry,” stated Joshua Motta, co-founder and CEO of Coalition, in an interview with TechCrunch.

Motta emphasized that the pandemic has highlighted the broadening scope of cyber risk. Increasingly, operational technology and industrial control systems are vulnerable to cyberattacks.

Comprehensive Coverage

Coalition distinguishes itself by offering policy coverage that extends to the full range of physical damage resulting from a cyberattack. This complements coverage for financial and intangible losses.

Pandemic-Driven Growth and White House Invitation

The surge in cyberattacks coinciding with the pandemic has significantly contributed to Coalition’s expansion. This growth led to Motta being invited to a recent White House meeting focused on cybersecurity policy.

Future Plans and Expansion

The newly acquired $500 million in total funding will be allocated to several key areas. These include expanding into new insurance product lines, entering new markets, and increasing the company’s workforce.

Currently employing 265 individuals, Coalition aims to grow its team to 315 employees by year-end.

Potential for Public Offering

Coalition suggests that this Series E round may be its last private funding round before considering an IPO.

“The investors involved have a strong history of backing companies that create lasting value in the public markets,” Motta noted. “We envision a similar path for Coalition, but will prioritize the needs of our customers and partners while adapting to market dynamics.”