Cowbell, a key player in cyber insurance for small- and medium-sized enterprises (SMEs), is experiencing rapid growth in 2023. The company has secured $25 million in equity financing, highlighting its position in the growing cyber insurance market. This follows Cowbell's top-grossing quarter and ongoing corporate expansion, bringing their total fundraising to $148 million.
The recent funding round, led by Prosperity7 Ventures, emphasizes Cowbell's industry leadership, positive investor support, and commitment to providing top-tier cyber insurance solutions for SMEs. In 2023, Cowbell expanded its customer base by an impressive 49% year-over-year, and the company's profitability is on the rise, with a 43% ultimate loss ratio for 2022.
Studies show that 72% of SMEs without cyber insurance fear a major cyberattack could devastate their business. Cowbell is addressing this vulnerability, achieving 2.5x premium growth in 2022 to protect SMEs from evolving cyber threats.
Cowbell is also expanding its reach by entering the UK market with Prime One. Their vertically integrated technology platform, AI-based approach, and a risk pool covering 38 million businesses in the US and UK set them apart. SMEs increasingly need robust cyber insurance as threat actors target this market. Cowbell's risk engineering and claims management service, Cowbell 365, has prevented extortion payments over 74% of the time and, when necessary, reduced ransom payments to an average of 26% of the initial demand.
With the global economic cost of cybercrime projected to reach $24 trillion by 2027, Cowbell is well-positioned for growth. Chris Zhong, Investment Principal at Prosperity7 Ventures, expressed their excitement in partnering with Cowbell as it solidifies its leadership in global SME markets.
Jack Kudale, Founder and CEO of Cowbell, highlights strong momentum and record policyholder growth. The new investment will enhance their focus on serving the US and UK markets, demonstrating their expertise, culture, and market leadership.
Cowbell's commitment to closing the insurability gap and adapting to customer needs is evident through its diverse set of reinsurance partners and flexible approach to cyber risk assessment and coverage. The company's omnichannel strategy, differentiating its distribution model, has seen a 14% increase in the last 12 months.
Recognition from Demotech, CBInsights, and Amazon Web Services validates Cowbell's effectiveness. Their growth in 2023 underscores their dedication to helping SMEs protect against cyberattacks.
