As 20% of all U.S. small-and-medium businesses (SMB) remain uninsured against a cybersecurity threat, Cowbell Cyber Solutions raised $100 million in Series B funding, aiming to provide cyber security services necessary to protect against looming cyber security threats, the startup said.
From 2018 to 2019, use of malware specifically targeted to MacOS software has increased by 165%, according to data from Purple Sec, a computer security service. Additionally, 70% of all malware is ransomware that requires a fee for its elimination, and more than a third of businesses hit with malware take more than a week to regain their data. Ninety percent of financial companies, both large and small, report being targeted by malware, Purple Sec reports. Cowbell Cyber says it aims to halt these malware attacks before they become a viable threat, by keeping companies in the loop about risks and losses.
Cowbell Cyber is already the most prominent cyber insurance distribution network in the country, with a risk pool of 23,000 businesses and 14,000 producers. It insures more than 70% of the SMBs in the cyber insurance market and says it’s hoping to expand even further. The latest round of financing is led by Anthemis Group, along with 12 other investors. Cowbell seeks to increase the insurability of small businesses by allowing business owners a look at their risk exposure and loss mitigation. The money would be invested in underwriting, claims management, risk engineering, data science, marketing, and publicity, the company said.
A recent report from reinsurance broker Gallagher Re estimates that cyber security will be a meaningful player in the market for the next 20 years, claiming the cyber reinsurance market will double in size every three years, corresponding to the growing intensity of cyber security threats.