Cowbell announces $25M in equity financing, underscoring its leadership in the expanding cyber insurance market
Cowbell, a leading provider of cyber insurance for small- and medium-sized enterprises (SMEs), today announced significant momentum and new financing on the heels of its top-grossing quarter and amid continued corporate growth. Cowbell’s new financing builds on its $148M raised to-date.
Cowbell announced a new investment led by Prosperity7 Ventures, with participation from other new and existing investors, highlighting its industry leadership, positive investor traction and dedication to providing best-in-class cyber insurance for the SME market. The company continued to grow its new customer base in 2023 by 49% year-over-year. Cowbell’s profitable growth path is also tracking positively, with a 43% ultimate loss ratio for 2022.
According to a recent study, 72% of SMEs without cyber insurance say that a major cyberattack could destroy their business. Cowbell is closing the insurability gap for this critically important market, achieving 2.5x premium growth in 2022 to insure SMEs against evolving cyber threats.
Cowbell has widened its geographic footprint, recently launching operations in the UK market with Prime One for UK SMEs. Cowbell’s vertically integrated technology platform, AI-based approach, and continuously monitored risk pool– now comprising 38 Million US and UK businesses– remain key differentiators. The need for SMEs to augment their cybersecurity with a robust cyber insurance policy has never been greater, as more and more threat actors are targeting this market. Since its inception, Cowbell 365, Cowbell’s dedicated risk engineering and claims management service has prevented extortion payments over 74% of the time and when a ransom must be paid, it’s reduced to an average of 26% of the initial demand.
“Economic costs of cybercrime will reach $24T by 2027, accelerating cyber insurance adoption and growth even further. We are investing in Cowbell’s strengths – its people, culture and unit economics,” said Chris Zhong, Investment Principal at Prosperity7 Ventures. “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.”
“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,” said Jack Kudale, Founder and CEO of Cowbell. “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.”
Cowbell’s momentum demonstrates its ongoing commitment to closing the insurability gap, and dedication to evolving as its customers’ needs evolve. Cowbell has a diverse set of reinsurance partners, spanning over 20 prominent reinsurers globally. Its approach to assessing cyber risk and providing tailored, flexible coverage are the underpinnings of its industry leadership. The company has pushed its omnichannel strategy forward in 2023, which differentiates its distribution model from its closest competitors, bolstering its combined retail broker and embedded insurance channels by 14% in the last 12 months.
Consistent recognition validates the effectiveness of Cowbell’s approach. Cowbell Specialty Insurance Company (CSIC), Cowbell’s wholly owned subsidiary, has earned a Financial Stability Rating® (FSR) of A, Exceptional, from Demotech, Inc. Last quarter, CBInsights recognized Cowbell as one of the top 100 private fintech companies globally, and the only Cyber Insurance provider on its annual Fintech 100 list. Earlier this year, as a testament to Cowbell’s deep expertise in serving SME customers with cyber insurance coverage tailored to their needs, Amazon Web Services (AWS) named Cowbell to its Cyber Insurance Partner Initiative.
For more information about Cowbell, please visit https://cowbell.insure/.
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