California-based cyber insurance firm Cowbell Cyber this week announced raising $20 million in a Series A funding round.
The company previously raised $3.3 million in seed funding, which it announced in September 2019 when it emerged from stealth mode.
The Series A round was led by Brewer Lane Ventures, with participation from Pivot Investment Partners, Avanta Ventures, Markel Corporation, ManchesterStory, Tri-Valley Ventures, and Holmes Murphy. The money will be used to increase Cowbell’s footprint and to boost product development, risk engineering, sales, and marketing.
Cowbell did not disclose a valuation for the latest funding round. However, sources close to the company put the valuation close to $100 million.
Cowbell, which offers its services to businesses with a revenue of up to $1 billion, describes itself as the first cyber insurance provider to use AI for risk selection and pricing.
The company claims to have a network of over 4,500 agents and brokers, and a risk pool of 10 million monitored organizations.
“Cybersecurity is now a risk management issue that is critical to the future of the insurance industry and is evolving at a pace that insurers have rarely seen,” said Jack Kudale, founder and CEO of Cowbell Cyber. “Cowbell Cyber has capitalized on businesses’ accelerated digitization and an ever-changing threat landscape. Cowbell embraces AI and machine learning to gain efficiency and accuracy when assessing and underwriting cyber risk while focusing on the fundamental needs of our policyholders: keeping their businesses protected from evolving cyber threats.”
Also this week, cyber insurance provider Corvus announced raising $100 million in a Series C funding round, bringing the total investment obtained by the firm to $147 million.
Related: The Case for Cyber Insurance