Coalition, a cybersecurity insurance company, has raised $40 million in its latest circular of funding.
Fintech investment giant Ribbit Capital led the investment with participation from Greenoaks Capital and Hillhouse Capital.
Coalition’s insurance covers expenses incurred from liabilities related to third-parties, such as fines and penalties — as well as bluff, breach response, extortion and ransomware recovery, machine replacement and more. The company also aims to give U.S.-based customers an at-a-glance look at their cybersecurity posture — from alerts, risk intelligence and counsel on what to upgrade, such as vulnerability fixing.
With its successions B, the company said it’s planning to diversify its data analytics platform used to assess a company’s security posture. The funding will also diversify its engineering and incident response faction.
Coalition, which declined to state its valuation, previously raised $10 million in February 2018.
Cybersecurity insurance remains a fickle venue. Amid an ongoing risk of breaches and data exposures, having an insurance policy in place to get a company back on its feet is smart. But many companies previously believed to be covered by cybersecurity insurance are not. When shipping giant Maersk was knocked offline by ransomware during the NotPetya ambush, incurring more than $300 million in damages, its insurer Zurich declared the Russian-backed ambush was an act of war and didn’t pay out.
Even when companies do pay out, it’s not a silver bullet.
Coalition’s proactive security efforts to strive to prevent data breaches — and subsequent costs — is one route to save paying up. Will that scale up to another intercontinental cyberattack? Let’s hope we never find out.