Cyber insurtech Cowbell raises $25m following robust growth
US cyber insurtech Cowbell has raised another US$25m in equity funding, meaning the firm has now raised more than US$150m to date.
The investment is led by Prosperity7 Ventures and highlights the company’s “positive investor traction and dedication to providing best-in-class cyber insurance for SMEs,” the California-based company claims.
The insurtech, which was only founded in 2019, is aiming to target a market opportunity in the cyber insurance sector which could be worth US$84bn by 2030, according to previously published research from Fortune Business Insights.
In particular, Cowbell is targeting SMEs; once thought too small for cybercriminals to target, they are increasingly finding themselves in the digital crosshairs and often have fewer resources to fight back. Indeed, with reports of hacker groups now using small firms as training grounds for new recruits, SMEs must ensure they are adequately armoured against the rising cyber threat. According to a recent study produced by the firm, over 70% of SMEs without cyber insurance say that a major cyberattack could destroy their business.
‘Cost of cyber crime to reach $24tn’, Cowbell predicts
Cowbell’s latest funding comes amid growth in new customers – up almost 50% year-on-year – while the company is also tracking positively in terms of profitability, with a 43% ultimate loss ratio recorded last year.
“The economic costs of cyber crime will reach US$24tn by 2027, accelerating cyber insurance adoption and growth even further,” says Chris Zhong, Investment Principal at Prosperity7 Ventures. “We are investing in Cowbell’s strengths – its people, culture and unit economics.
“Prosperity7 is excited to partner with Cowbell on their path to profitable growth and near-term operating profitability as the company further cements its leadership in global SME markets.”
Jack Kudale, Founder and CEO of Cowbell, continues: “Momentum and policyholder growth is strong, with record renewal retention. We just closed our largest quarter to date on the strength of omnichannel distribution, and with a focus on servicing our broker partners and policyholders.
“With this new investment, we will deepen our focus on serving our chosen markets in the US and UK. This milestone is a testament to our expertise, culture, and market leadership.”
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