American cyber insurance company Coalition has raised $205m in a Series E funding round at a valuation of $3.5bn.

Durable Capital, T. Rowe Price Associates and Whale Rock Capital co-led the funding round with participation from existing investors.

Founded in 2017 by Joshua Motta and John Hering, Coalition will use the funds to scale its business and foray into new lines of insurance.

Coalition offers no-cost cybersecurity tools to prevent losses along with security and incident response services to contain the losses and insurance.

Coalition CEO and co-founder Joshua Motta said: “Insurers need to do more than analyze cyber risk once a year. We scan our policyholders 65,000 times a week. Our platform aggregates and analyses data from every internet-addressable device inside a company, scanning a policyholder’s assets to identify potential vulnerabilities so we can help minimize risks.”

Earlier this year, Coalition raised $175m and it has secured $500m in equity funding to date.

The insurer has backing from the likes of Swiss Re Corporate Solutions, Arch Insurance, Lloyd’s of London, and Argo Group.

Durable Capital Partners CIO Henry Ellenbogen said: “Coalition is solving a critical gap in the cyber risk and insurance space by aligning the right incentives.

“We believe digital assets will soon be more valuable than physical assets placing Coalition firmly on the path toward long-term sustainable growth and value creation.”

In May this year, Coalition introduced an integrated platform for managing risk with free attack surface monitoring and cyber risk assessment.