At-Bay, a five-year-old Israeli startup which insures organizations against cyber threats, announced today it raised $185 million at a value of $1.35 billion after money.
The Series D fundraising round is the company’s third in the last 18 months, bringing total funding to $272 million. Icon Ventures and Lightspeed Venture Partners co-led the new funding round, which included participation from existing investors such as Khosla Ventures, M12, Acrew Capital, Qumra Capital, Munich Re Ventures’ HSB fund, and entrepreneur Shlomo Kramer.
The current fundraising round is the latest in a string of record-breaking expansion for At-Bay. The company recently topped $160 million in yearly recurring income, owing to an 800 percent increase in premium revenue year over year. At-Bay continues to expand at this rate while exceeding the cyber insurance market in terms of risk reduction, with a ransomware claim frequency seven times lower than the industry average.
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At-Bay underwrites insurance policies as a Managing General Underwriter (MGU) through HSB Specialty Insurance Company, which is rated A++ by A.M Best Company and is a subsidiary of Munich Re.
The frequency of ransomware attacks has increased in the last year, while ransom demands have tripled, reaching millions of dollars for large corporations and $300,000 for medium-sized businesses. Following this year, insurance companies realized they had lost money on cyber insurance. As a result, they increased prices by more than 80%. Premiums were more than doubling in a variety of businesses, and this is a time of increasing demand. “Our annual recurring premium returns increased eightfold to more than $160 million (counting premiums in the insurance industry parallels ARR),” CEO Rotem Iran told Calcalist.
“The cyber insurance industry is currently facing an unprecedented ransomware crisis” said Roman Itksovich, Co-Founder and Chief Risk Officer of At-Bay. “At-Bay has been actively working since inception to be able adapt and manage these types of risks. Our combination of technical underwriting and active risk monitoring is what keeps us ahead of the curve.”
At-Bay employs 120 people, approximately 50 of whom work at the company’s R&D center in Israel. The company has also offices in New York, San Francisco, and Atlanta. The recent funds will double Israel’s workforce. At-Bay’s development teams bring together experts from the worlds of software, security, data, and risk.
At-Bay was founded in 2016 by CEO Rotem Iram, Ayelet Kutner (VP of technology), and Roman Itskovich (VP of risk). Two other founders Itai Hochman and Tilli Kalisky left the company.