New York-based Converge Insurance, which offers cyber risk management services to small- and medium-sized businesses, has raised $15 million in a Series A round led by California’s Forgepoint Capital, a venture firm that specializes in investing in cybersecurity startups.
Subsequent to the funding, Forgepoint managing directors Don Dixon and Andrew McClure were handed seats on the company’s board, as was Tom Kelley, described as a “company builder.” Global Holdings CEO Steve Petrevski and Converge co-founder and Anthony Dagostino, former entrepreneur-in-residence at Forgepoint, are also on Converge’s board.
Converge also elevated Chief Insurance Officer Tom Kang, an insurance industry veteran with significant expertise in cyber, to the position of CEO.
“Converge combines a proprietary data ecosystem, expert underwriting from a world-class team and a powerful platform with a results-driven approach designed to mitigate risk,” said McClure, who was previously a Marine Corps officer leading cybersecurity and intelligence operations in Afghanistan, the Middle East, East Africa and Australia. “What they have been building is truly world-class and will change the game for an industry in dire need of modernization.”
Kang, who was head of Cyber, Tech and Media at German insurance giant Allianz, talked up the company’s mission to empower policyholders with radically transparent cyber insurance so they can manage technology risks more intelligently.
“We’re thrilled to partner with the team at Forgepoint Capital, who uniquely understand the needs and opportunities of this burgeoning market,” said Kang, who has held senior positions at Willis Towers Watson, The Hartford and the ACE Group. “This funding will enable us to expand our outreach and grow our bench of in-house experts while accelerating the availability of the Converge platform worldwide.”
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Converge explained its focus on SMBs by pointing out the dire situation facing most. About 60% of SMBs that face a cyberattack go out of business within six months, it said, adding that in 2021, 61% of the businesses faced cyberattacks. Converge’s plan is to offer affordable cyber risk insurance, and bundle it with security and technology assessments. Its ConvergeElements insurance policy covers a wide range of cyber exposures, including data breaches, ransomware attacks and extortion. Along with it, Converge offers an assessment of current and future cyber risks.
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Last week, Converge announced a partnership with QBE North America, a unit of QBE Insurance Group Limited. Under the deal, Converge will act as program administrator for the global insurer’s cyber risk products. “Converge is the latest company in our investment strategy to reinvent cyber insurance and risk management,” said Forgepoint’s Dixon.
San Mateo Calif.-based Forgepoint invests exclusively in cybersecurity startups. Its portfolio consists of nearly 40 firms, while its assets are valued at over $1 billion. Founded in 2015, Forgepoint’s past bets have included 1Kosmos, Area 1 Security (acquired by Cloudflare), Attivo Networks (acquired by SentinelOne), Huntress, and Uptycs.