Coalition Inc., a cybersecurity insurance provider that also supplies its customers with breach prevention software, is now worth more than $3.5 billion after raising a funding round led by Durable Capital, T. Rowe Price and Whale Rock Capital.

Coalition announced the investment this morning. The startup says it plans to use the funding to launch more cyber insurance products and expand into new markets. Coalition will hire additional employees to support the growth effort, with plans to increase its headcount from 265 staffers today to 315 by year’s end.

San Francisco-based Coalition sells insurance plans that help companies mitigate the financial impact of data breaches. The startup says that more than 52,000 customers have bought insurance policies to date, double the number of users it had a year ago. Coalition’s services are mainly used by small and midsized businesses, as well as fellow tech firms looking to mitigate the financial risks that may emerge if their products encounter technical issues. 

The growth of Coalition’s customer base has boosted its top line. Over the past year, the startup reports to have recorded a 800% increase in its run rate premium, a metric that it uses to track the value of customers’ insurance premiums. Coalition’s run rate premium now stands at $325 million.

The startup has set itself apart from the numerous other players in the cyber insurance market by providing customers not only with insurance policies but also cybersecurity tools. Coalition offers software that businesses can use to regularly scan their information technology systems for known vulnerabilities. According to the startup, it analyzes policyholders’ infrastructure more than 65,000 times a week for potential issues.

Coalition’s vulnerability detection service is only one of several cybersecurity offerings available to customers of its insurance plans. The startup also provides tools that can spot malware in companies’ networks and detect when employees passwords are accessed by hackers. And it has a cybersecurity team dedicated to assisting customers with fixing security issues found in their systems. 

“Our platform aggregates and analyzes data from every internet-addressable device inside a company, scanning a policyholder’s assets to identify potential vulnerabilities so we can help minimize risks,” said Coalition co-founder and Chief Executive Officer Joshua Motta. “We are setting a new standard for an industry that has been slow to unleash the full power of data, and this has positioned our company for tremendous growth in the digital economy.”

According to Coalition, its policyholders report 70% fewer cyber insurance claims than the industry average. The number is an indicator that the cybersecurity tools the startup provides as part of its plans are helping customers reduce the risk of data breaches. 

“The team at Coalition has vastly outpaced the industry in its ability to leverage data and capture the lion’s share of tech and the technology-powered insurance market,” said Durable Capital Chief Investment Officer Henry Ellenbogen. “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.”

Coalition has raised more than $500 million in funding to date. 

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