The funding round saw the participation of Allianz X, Valor Equity Partners, Kinetic Partners, and other existing investors

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Cyber insurance start-up Coalition raises $250m in Series F. (Credit: Biljana Jovanovic from Pixabay)

Coalition, a California-based cyber insurance provider, revealed that it has secured $250m in a Series F round that increased its valuation from $3.5bn to $5bn.

The funding round saw the participation of Allianz X, Kinetic Partners, Valor Equity Partners, and other existing investors.

Allianz X CEO Nazim Cetin said: “Coalition’s active, tech-based approach to cybersecurity and cyber insurance has proven to be profoundly effective, which is also reflected in its outstanding business results.

“The trends driving the importance of cyber defense are irreversible. We see an active approach as the most effective solution for addressing cyberthreats to businesses both now and in the future.”

Coalition partners with brokers in all 50 states of the US to offer active cyber and active executive risks insurance. In Canada, the company provides active cyber insurance.

It has plans to launch its active cyber programme in the UK later this year in partnership with Allianz.

Coalition has built the Active Risk Platform, which is designed to deliver automated security alerts, expert guidance, threat intelligence, as well as cybersecurity tools to help businesses stay resilient when faced with cyber attacks.

Founded in 2017, Coalition has raked in more than $755m in equity funding so far. This includes $205m in a Series E round in September 2021.

Its investors also include Durable Capital, T. Rowe Price Associates, Index Ventures, General Atlantic, Whale Rock Capital, Vy Capital, and Ribbit Capital.

The company claims to cater to more than 160,000 customers with its capabilities in active cyber insurance, property and casualty insurance, active executive risks insurance, and cybersecurity.

Coalition CEO and co-founder Joshua Motta said: “Many organisations remain unprotected in the face of rising digital threats, and neither traditional insurance nor cybersecurity alone is well equipped to help them.

“Our active approach to underwriting, monitoring, and responding to digital risk has allowed Coalition to achieve market leading underwriting results while demonstrably reducing claims and losses for our customers so they can continue to thrive in the digital economy.”