Cyber and speciality (re)insurance firm Envelop Risk has secured $130m from a Series B funding round led by SoftBank Vision Fund 2.
As part of the agreement, SoftBank Investment Advisers investor Neil Cunha-Gomes will join the Envelop board of directors. The transaction is expected to close in October of this year, subject to shareholder approval.
Envelop Risk offers bespoke underwriting solutions focused on the global cyber reinsurance market. The Envelop team includes globally recognised insurance expertise and unparalleled industry experience in AI and data analytics, in partnerships with specialist underwriters.
The company claims that it has ‘become a force’ in cyber reinsurance in less than five years and has captured significant market share and is competing with industry giants. Envelop has underwritten over $250m of business since 2018.
According to Envelop, the new funding will facilitate the company’s plans to expand its machine-learning and data-driven underwriting activity in London and Bermuda and hopes to fuel growth into new markets globally and beyond cyber (re)insurance.
In addition, the company stated that it plans to use the proceeds from the round to expand operations in cyber (re)insurance and cyber technology partnerships as well as launch new products in areas of corporate risk over the next year.
Envelop CEO and co-founder Jonathan Spry said, “We are delighted to have reached such a significant milestone in our funding journey. This transaction will allow us to continue our leadership in data-driven specialty (re)insurance underwriting and will be transformational for our business reach and activity.
“For the first time Envelop Risk will be able to assume positions in risk capital, which gives us greater alignment with our partners. We are all really excited to work with SoftBank Investment Advisers and together meet the huge opportunities that we see present in emerging and complex risk underwriting.”
Envelop COO and co-founder Paul Guthrie added, “We know that all companies of all sizes will eventually safeguard against increased risk through robust cyber insurance policies. Digital systems have reshaped our world, but they are also vulnerable individually, and as integrated networks.
“Cyber insurance plays a critical protective role. Envelop deploys capital thoughtfully into the cyber insurance ecosystem, providing assurance that mitigation resources are available immediately upon an attack, so organisations can continue to function in the face of these risks.”
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