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Cyber Insurance Firm Cowbell Raises $20 Million

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.

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Eduard Kovacs (@EduardKovacs) is a contributing editor at SecurityWeek. He worked as a high school IT teacher for two years before starting a career in journalism as Softpedia’s security news reporter. Eduard holds a bachelor’s degree in industrial informatics and a master’s degree in computer techniques applied in electrical engineering.