Coalition of cyber insurance providers appoints first CFO as it looks to expand

Coalition of cyber insurance providers appoints first CFO as it looks to expand

Cybersecurity insurance provider Coalition Inc. appointed its first CFO after raising $250 million in a Series F round.

The San Francisco-based company said Jim Young started on July 25 as chief financial officer. Most recently, Mr. Young was CFO at agricultural technology company Indigo Ag. He was previously CFO at investor communications and technology provider Broadridge Financial Solutions Inc.

and held senior financial positions at Visa Inc.,

which he helped take public in 2008.

Doug Ireland, Coalition’s head of finance, was previously in charge of the finance team and will now report to Mr Young, the company said.

The creation of the CFO position comes as the company focuses on launching operations in mainland Europe and the Oceania region, Chief Executive Joshua Motta said. Coalition, founded in 2017, operates in the US and Canada and expects to start offering its services in the UK in September. The company also wants to continue developing both new offerings and extensions to existing services, he said.

Mr. Young said he plans to increase the number of employees and prepare for the company’s expansion overseas. “It’s both developing the talent that we have and recruiting talent that you would expect in a really sophisticated company, private or public,” Mr. Young said.

The company has about 600 workers, up from nearly 300 a year ago, and plans to bring the total to about 700 by the end of this year, Mr. Motta said.

Mr. Motta said the company has no current plans to go public and is on track to be cash-flow positive for the year. The company said it serves 160,000 customers, a mix of businesses and nonprofits.

Coalition has raised more than $755 million in funding, including a $250 million round in July led by Allianz X, the investment arm of German financial services giant Allianz SE,

and investment firms Valor Equity Partners and Kinetic Partners Management LP. The latest round valued the company at approximately $5 billion.

The timing of the IPO, if the company pursues one, should not interfere with its long-term expansion and growth goals, said Nazim Cetin, chief executive of Allianz X. “The most important thing is to really stay on their trajectory and continue to innovate.” Mr. Cetin said, declining to disclose the amount Allianz invested in the July round.

Coalition said its revenue almost tripled in the 12 months to June to an annualized rate of more than $775 million in gross written premiums.

Mr Young said his experience at firms such as Broadridge and Indigo would help him navigate international expansion and, if Coalition eventually went public, generate returns for shareholders.

“These businesses are a good training ground for thinking about how to grow a business and what the film looks like at the end,” Mr Young said.

The coalition also recently named John Litzi as its first general counsel. Mr. Littzi most recently served as Deputy General Counsel at WR Berkley corp.

insurer.

Write to Mark Maurer at [email protected]

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