Coalition, a cybersecurity insurance and utility startup, has raised $205 million in Series E funding at a pre-IPO valuation of $3.5 billion. The financing—led by Durable Capital, T. Rowe Price, and Whale Rock Capital with participation from the company’s existing investors—will be used to support growth and fuel the company’s expansion into new markets as well as add new insurance lines on its path to an initial public offering. Founded in 2017 in San Francisco, Coalition offers a wide range of cybersecurity tools covering credential monitoring, endpoint detection and response (EDR), patch management, training, and more.
Coalition provides cybersecurity tools and insurance to help manage and mitigate cyber risk to more than 50,000 enterprise customers. The company’s “tech-first” philosophy in cybersecurity insurance is a fresh approach to risk mitigation thanks to the tools Coalition customers have at the ready to prevent potential problems. The new funding comes as Coalition continues to ride a wave of massive growth, crossing $325M in run-rate premium—an 800% increase over the prior year. Increased cyberattack threats have driven the cybersecurity insurance market, which is expected to reach approximately $28 billion by 2026, putting Coalition in the middle of a perfect storm of cyber volatility.