State Farm Ventures invests in Technology Company
Elpha Secure Technology Inc. completes a $20 million Series A funding round.
NEW YORK--(BUSINESS WIRE)--Elpha Secure Technology Inc., the first cyber insurance startup to combine proprietary cybersecurity software with coverage to improve risk transfer, has completed a $20 million Series A funding round. Canapi Ventures, a venture capital firm investing in early to growth-stage fintech companies, led the round with participation from Elpha Secure’s existing investors, including Stone Point Ventures, AXIS Capital, State Farm Ventures®, The Hartford STAG Ventures, Fermat Capital Management, and EOS Venture Partners.
Elpha Secure provides a groundbreaking cyber protection solution for small and midsize businesses that marries proprietary cybersecurity technology with insurance policies. In a departure from the conventional cyber insurance model, Elpha Secure’s end-to-end, proprietary solution helps customers reduce cybersecurity risk through its unique approach rather than focusing on limiting coverage or raising rates. As part of the company’s offerings, insureds gain enhanced coverage with a single software installation that brings greater cyber protection through security controls like encrypted data backups, multi-factor authentication for remote desktop connections, software version control, and machine learning to detect anomalies and advise specific action.
The funding round will help drive business growth across broker networks and evolve Elpha Secure’s product features to better equip small and midsize businesses to defend against cyberattacks and their consequences with end-to-end protection and response.
“We are humbled by the great investors supporting Elpha Secure and we are thrilled to welcome Canapi as a new partner,” said Preetam Dutta, CEO of Elpha Secure. “Digital threats are growing in variety, frequency, and intensity, so cyber insurance is becoming indispensable. Yet, smaller businesses are finding they don’t have adequate cyber infrastructure to qualify for insurance. Instead of challenging business owners to define and implement the required cybersecurity measures themselves, we provide these measures through our software as well as the insurance policy. We’re only just getting started, and we look forward to expanding our reach and serving even more businesses in need in the years to come.”
“Today’s small and midsized businesses are not only at a greater risk than ever of suffering a cyberattack, but they also face significant hurdles when it comes to acquiring cyber insurance policies,” said Jeffrey Reitman, Partner at Canapi Ventures. “By embedding security controls directly into their policies, Elpha Secure removes the friction associated with acquiring a cyber insurance policy, while simultaneously controlling loss ratios for their carrier partners. In offering an unprecedented solution that newly combines both cyber protection software and insurance, Elpha Secure greatly reduces the cyber risks in the system for all. We’re so excited to be leading this Series A and look forward to helping fuel the company’s growth into the future.”
Elpha Secure’s team of in-house experts has crafted a streamlined portal experience to eliminate friction in the insurance quoting, binding, and renewal process. For users, the team provides support for all of their cybersecurity needs throughout the life of the policy. Customer employees can easily improve and maintain their organization’s cyber health, which shrinks the attack surface and reduces the chance of an insurance claim, through Elpha Secure’s centralized suite of security controls on its intuitive platform. The cyber insurance product is backed by two industry-leading insurance carriers, AXIS Surplus Insurance Company and Everest Indemnity Insurance Company.
"As a specialist insurer and reinsurer with a leading cyber practice, we at AXIS recognize the dynamism of the digital risk landscape and the importance of risk mitigation against this backdrop,” says Linda Ventresca, Head of Digital at AXIS Capital. “Elpha Secure’s innovation in monitoring, reducing, and managing risk throughout the life of an insurance policy aims to improve an insured's risk profile, ultimately delivering better experiences and outcomes for all stakeholders."
About Elpha Secure
Elpha Secure fuses cyber insurance with advanced security software and support for a complete cyber defense in a single product designed for small and midsize businesses. Built upon a belief that all business owners should have access to the tools they need to function safely in the digital age, we evolve the standard approach to cybersecurity by providing user-friendly software, the protective measures needed to qualify for cyber insurance, and the insurance itself. Our company is headquartered in NYC, with technology teams spread across North America. Learn more at https://www.elphasecure.com.
Canapi Ventures is a venture capital firm investing in early to growth-stage fintech companies. Our partners have been at the forefront of financial services innovation as operators, investors, bankers, advisors, and regulators. Our venture capital model connects high-quality fintech companies to our extensive network of banks and strategic partners. Canapi Ventures is advised by CenterHarbor Advisors and Canapi Advisors, LLC, a wholly owned subsidiary of Live Oak Bancshares, Inc. (Nasdaq: LOB). For more information, visit http://www.canapi.com.
For Elpha Secure:
For Canapi Ventures:
Chris Kittredge/Danya Al-Qattan/Kevin Siegel
For over 100 years, the mission of State Farm has been to help people manage the risks of everyday life, recover from the unexpected and realize their dreams. State Farm and its affiliates are the largest providers of auto and home insurance in the United States. Its more than 19,400 agents and 67,000 employees serve over 91 million policies and accounts – including auto, fire, life, health, commercial policies and financial services accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is also available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 44 on the 2023 Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com.