Insurtech Arceo.ai raises $37m funding to expand cyber insurance coverage
San Francisco-based insurtech Arceo.ai, a provider of cyber resilience solutions, has secured $37 million funding led by Lightspeed Venture Partners and Founders Fund with participation from CRV and UL Ventures.
In addition, Hemant Shah, founder and former CEO of catastrophe risk modelling firm RMS, has joined Arceo's board of directors.
The funding follows the patenting of Arceo's ability to blend cybersecurity data with innovative underwriting strategies. Founded in 2016, the company enables insurance providers to scale their cyber line of business using curated security data for accuracy, AI for advanced risk assessment, and workflow automation for efficiency.
"We founded Arceo to create a new framework to solve cyber risk. By blending cybersecurity, threat intelligence, and insurance into one platform, we believe we can unlock new solutions to make companies quantifiably more secure," said Vishaal Hariprasad, CEO of Arceo.ai. "Our company's name in Latin means 'clearly seeing risks ahead of you.' Our platform will enable companies to effectively mitigate the constant threat of cyber attacks."
Arif Janmohamed, partner at Lightspeed Venture Partners, said: "Arceo's founders bring a unique set of enterprise and military expertise to tackle an increasingly global threat - cybersecurity. Addressing the security risks that organisations face today needs the kind of defense mindset and technology expertise that the Arceo team is bringing to the market to deliver a modern and end-to-end cyber insurance platform."
Trae Stephens, partner at Founders Fund, added: "Assessing risk in the security world is not about looking at a single point in time; there needs to be a constant examination that informs insurers and their clients about emerging risks. Fortunately, the data that Arceo is analysing gives insurers and their clients the opportunity to proactively prepare for incidents through risk mitigation and risk transfer."
