Cyberinsurance company At-Bay Inc. has raised $13 million in new funding to accelerate development of its cybersecurity monitoring service and its insurance products, pitched as providing “insurance for the digital age.”

The round was led by Keith Rabois of Khosla Ventures, Yoni Cheifetz of Lightspeed Venture Partners with Shlomo Kramer, co-founder of Check Point Software Technologies Ltd., with Imperva Inc. and Cato Networks also participating.

Founded in 2016 with offices in Israel and Mountain View, California (pictured), At-Bay is building insurance products and services that enable companies to innovate despite recurrent threats. In a combination of both security and financial protection against risk, their platform has been designed to analyze, model and predict cyberrisk continuously, while at the same time providing insurance coverage against attacks if they occur.

“Cyberinsurance is one of the fastest growing and complex markets, yet the incumbents are still currently relying on standardized checklists and irrelevant actuarial data to model risk,” Rabois said in a statement Wednesday. “At-Bay is focusing on customized and real-time risk modeling and risk reduction for its customers.”

Cyberinsurance is far from a new concept, with multiple companies, including insurance giants, already offering products designed to assist an organization to mitigate risk exposure by offsetting costs involved with recovery after a security breach or similar event.

The problem is that assessing cyberrisks is difficult compared with more traditional types of insurance, such as car or health insurance, and as such are often costly. What At-Bay is attempting to do is to build a specific platform that can better assess the risk factors at play while also facilitating insurance to match those risks based on the technology.

According to a report from Allied Market Research, the cyberinsurance market is predicted to grow to $14 billion by 2022, with a compound annual growth rate of nearly 28 percent. Taking on the big players in the insurance market is obviously highly challenging, but with a market that size, At-Bay needs to carve out only a small niche client base to be successful.

Including the new funding, At-Bay has raised $19 million to date.

Photo: At-Bay