CyberCube has raised $50 million in additional growth capital from investment funds managed by Morgan Stanley Tactical Value (Morgan Stanley), with continued participation from all existing investors Forgepoint Capital, Hudson Structured Capital Management (Bermuda), MTech Capital, and key investors from Stone Point Capital.
Scott G. Stephenson, former Chairman, President and CEO of Verisk, also participated in the financing and will join the CyberCube board as a director. This latest financing brings CyberCube’s total capital raised to over $100 million.
CyberCube models cyber risk to allow insurers and brokers to understand their portfolios’ exposure to cyber threats while enabling their clients to better protect themselves. CyberCube’s products also aid underwriters in their evaluation of individual commercial risks during the underwriting process.
The new funding will fuel the commercial development of CyberCube’s products and solutions to quantify cyber risk while accelerating go-to-market expansion in the global insurance, reinsurance and broking industry.
“This is an exciting milestone in our mission to empower modern industry and society with world-leading cyber risk analytics so everyone can make better decisions,” said Pascal Millaire, CEO of CyberCube.
“In Morgan Stanley, we’ve found a tremendously supportive partner who recognizes the growing significance of cyber risk to the global economy and stands ready to support CyberCube as our business matures from an early market leader to a critical part of the analytics infrastructure in what is becoming one of the largest lines of P&C insurance globally,” Millaire added.
Pedro Teixeira, Co-Head of Morgan Stanley Tactical Value and Managing Director at Morgan Stanley, said: “CyberCube is a business that’s drawn great interest from the investment community. Its role in the insurance markets and the wider economy has been recognized as pivotal by industry participants. It presents both a strong investment opportunity and the ability for Morgan Stanley to play a positive role in the ongoing mitigation of global cyber threats.”
Michael Millette, Co-Founder and Managing Partner at HSCM Bermuda and CyberCube board member, added: “CyberCube has built a market-leading position in a pivotal role in the cyber insurance value chain. The quantification of cyber risk through robust modeling will allow industry participants to predict risk levels and provide useful pricing information. We are delighted to continue our support of CyberCube in its mission to deliver data-driven cyber risk analytics built for the insurance industry.”
CyberCube frequently updates its software-as-a-service offerings and provides a wide range of products that include:
- Broking Manager, for brokers to better advise their clients on risk transfer.
- Portfolio Manager, a scenario-based catastrophe model that empowers portfolio-level insights for senior leadership decision-making.
- Account Manager, giving insurance underwriters a view of each risk they assess with actionable insights.
- CyberConnect, which integrates analytics through application programming interfaces (APIs), seamlessly integrating into existing workflows.
In 2022 alone, CyberCube announced strategic partnerships with Relm Insurance, Elpha Secure, Kapnick, Relay, EXL, AkinovA, Baldwin Risk Partners, McGill and Partners, CyberAcuView, QBE, Kroll, URS, Cooper Gay, RT ProExec, Duck Creek Technologies, Majesco, Fermat Capital Management, TrueNorth, and Converge Insurance, which is also a Forgepoint company.
Don Dixon, Co-Founder and Managing Director at Forgepoint and Chairman of the CyberCube board, said: “The transfer of cyber risk to the insurance markets is fast becoming ubiquitous and vital for holistic risk management across sectors. Forgepoint is taking a leadership position in supporting collaboration between the insurance and cyber security industries. Our continued support of CyberCube is a key part of that strategy and we are thrilled for the company’s next chapter of growth.”
Scott G. Stephenson said: “Cyber risk management is one of the biggest threats facing businesses today and one of the greatest growth opportunities for the insurance sector. A key to unlocking this potential is the development of robust analytics tools to assist risk decision-making. I’m excited to support CyberCube given the tremendous opportunity the company has to drive value for businesses, insurance institutions, and for society in the decades to come.”
Oliver Wyman provided commercial due diligence services to Morgan Stanley Tactical Value and Latham & Watkins represented Morgan Stanley Tactical Value as legal counsel on the transaction.