Cowbell Cyber has raised $100 million in a Series B led by Anthemis Group, in the latest large bet on cyber insurance tech.

The funding, which includes participation from Permira, PruVen Capital, NYCA Partners and Viola Fintech, follows a strong year for cyber insurance, which accounted for nearly a third of all VC investment in commercial insurance in 2021, according to PitchBook's 2021 insurtech market map.

Growing cyber-risk, along with the changing nature of digital attacks which leaves gaps in coverage, has convinced many companies to pursue standalone cyber insurance policies, according to PitchBook senior analyst Robert Le.

Cowbell founder and CEO Jack Kudale expects much of the company's new growth to come from market expansion, as more small and medium-sized businesses look to purchase cyber coverage. Previously, much of the company's growth was driven by premium increases.

One driver for rising premiums has been the increase in costly ransomware and cyberattacks, which has forced insurers to hike their prices, Le said.

The Russian invasion of Ukraine could make matters worse, as US officials have warned that cyberattacks in the region could affect organizations around the world.

"As we position ourselves to lead the 'second wave' of cyber insurance growth, this funding will accelerate our pioneering approach to cyber-risk underwriting and drive growth and profitability while closing insurability gaps," Kudale said in a statement.

Matthew Jones, managing director at Anthemis Group, said the firm had been focused on cyber insurance for a long time and decided to invest in Cowbell after seeing its strong results.

Founded in 2019 and based in Pleasanton, Calif., Cowbell plans to use the new capital to increase investments in data science and underwriting, among other areas, as well as expand go-to-market channels such as digital distribution.

In March 2021, Cowbell raised $20 million at a $100 million valuation in a Series A round led by Brewer Lane Ventures.

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