Israel's At-Bay announced Tuesday that it has secured $185 million in Series D financing. At-Bay, which describes itself as an insurance company for the digital age that combines advanced technology with insurance expertise to empower businesses to thrive in the digital world, has now become a unicorn with a valuation of $1.35 billion.
The funding round was co-led by Icon Ventures and Lightspeed Venture Partners, with participation from existing investors including Khosla Ventures, M12, Acrew Capital, Glilot+, Qumra Capital, the HSB fund of Munich Re Ventures, and entrepreneur Shlomo Kramer, the company said.
At-Bay says it will use the funding to continue investing in innovation, launch new products, expand into new markets, and continue growing its team and capabilities to improve the security of its insured businesses.
As the cyber insurance industry reels from ransomware losses, At-Bay's cybersecurity expertise has unlocked unprecedented growth, while minimizing losses to less than half of the industry average. The Series D marks the company’s third round in the past 18 months and brings its overall funding to $272 million. At-Bay’s post-money valuation now sits at $1.35 billion, according to the company.
"We are seeing a fundamental shift in commercial insurance with regard to cyber risk, and At-Bay is leading the way," said Rotem Iram, the company's co-founder and CEO. "While legacy insurers are pulling back on coverage and drastically raising rates in the face of challenges like ransomware, At-Bay is doubling down with a modern approach to risk management that helps businesses improve their security and avoid loss before it happens."
Preeti Rathi, General Partner at Icon Ventures, has joined At-Bay’s Board of Directors in conjunction with the financing.
The new funding is the latest milestone in a stretch of unprecedented growth for At-Bay. The company recently surpassed $160 million in annual recurring revenue on 800% year-over-year premium growth. At-Bay is growing at this pace while outperforming the cyber insurance market on risk mitigation, maintaining a ransomware claims frequency that is seven times lower than industry average, the company says.
"The cyber insurance industry is currently facing an unprecedented ransomware crisis," said Roman Itksovich, At-Bay co-founder and Chief Risk Officer. "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."