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The Coalition, a cybersecurity business based in San Francisco, disclosed on Wednesday that it had raised $175 million in a Series D fundraising round, which Index Ventures primarily led. With a $1.75 billion valuation in the most recent round, Coalition is officially a unicorn. Since the pandemic’s beginning, the Coalition has been quite active. The company’s Series C financing raised $90 million less than a year ago. According to the business, Coalition has raised $300 million in venture capital funding. Along with other current investors, General Atlantic’s growth equity firm took part in the round.
The process involved in the Coalition
The cybersecurity platform intended to increase the size of its staff by the end of 2021. The company’s core product will be expanded with the help of additional investment as it continues to develop internationally. Currently, the company is seeking many remote employees in Coalition’s engineering, marketing, product, and data science departments.
Due mainly to the epidemic requiring businesses to adapt to a new era of remote labor digitally, security breaches have increased over the past year. For companies to stay safe from cyberattacks, Coalition’s platform offers automatic security alerts, endpoint detection and response, patch management, and various additional cybersecurity solutions. The business also provides insurance for businesses. Coalition safeguards companies from financial, material, and intangible losses of up to $15 million as part of its security strategy.
Not limited to technology
The Coalition was established in 2017 and offered cyber insurance coverage in the United States and Canada. According to Motta, a standard coverage with a $1 million cap often costs a business $3,000 annually. In the United States, the company sells insurance with maximum amounts of $15 million. Additionally, it provides freemium cybersecurity software tools to both policyholders and non-policyholders. The Coalition has over 41,000 clients and a gross written premium run rate of over $240 million. According to Motta, this development results from a more profound knowledge of cybersecurity insurance requirements.
The Coalition intends to use this money to make three significant investments:
• Create the future’s digital insurance provider.
Technology will shape the insurance industry in the future, and investors will keep investing money into creating a top tech firm that focuses on innovation throughout the insurance value chain.
• Add new product categories.
The Coalition expects to launch new insurance products soon to address a variety of hazards facing the modern firm, many of which are not adequately protected by typical business insurance policies. This follows its spectacular growth in cyber and technology insurance.
• International enlargement
The Coalition intends to broaden its product offerings into several new foreign markets after entering Canada in 2020.
Know about Coalition
To assist organizations in managing and reducing cyber risk, Coalition, the industry’s top cyber insurance and security provider, combines comprehensive insurance with proactive cybersecurity capabilities. Coalition offers businesses up to USD 15 million in cyber and technology insurance coverage, as well as CAD 20M of coverage across nine provinces and three territories in Canada. The Coalition is backed by renowned international insurers Swiss Re Corporate Solutions, Arch Insurance, Lloyd’s of London, and Argo Group. With offices in the United States, Canada, the United Kingdom, Switzerland, and Portugal, Coalition’s staff is located worldwide.
Final thoughts
Leading international technology investors, including Index Ventures, General Atlantic, Ribbit Capital, Vy Capital, Hillhouse Capital, and Valor Equity Partners, have contributed $300 million in equity capital to Coalition. The Coalition is one of the biggest cyber insurance and security providers in the US and Canada. The Coalition now provides free cybersecurity tools to over 42,000 customers, security and incident response services to contain losses, and comprehensive insurance to aid firms in recovering from failures and breaches. Following long-term capacity guarantees from renowned international insurers Swiss Re and Arch Insurance, the investment was made.