Unicorn Builders Joshua Motta: How Coalition Created the "Active Insurance" Category ($5B Valuation)
Coalition has revolutionized the cyber insurance industry by creating an entirely new category called "active insurance." From its founding in 2017, Coalition has grown to become North America's largest cyber insurance provider, surpassing incumbents who had been in the market for over 20 years. In this episode of Category Visionaries, Joshua Motta shares how Coalition transformed from a startup to a $5B+ company by shifting demand away from traditional insurance products and establishing leadership in a new category they created.
Topics Discussed:
- The evolution from cyber security as a technology problem to a risk management challenge
- Creating and defining the "active insurance" category
- Building and scaling distribution through existing insurance broker channels
- The role of education and storytelling in category creation
- Coalition's expansion beyond cyber insurance to protect digital businesses' intangible assets
- International expansion strategy and future growth plans
GTM Lessons For B2B Founders:
- Create categories, don't compete for existing demand: Instead of fighting for market share in an existing category, Coalition created a new category of "active insurance." This allowed them to shift the conversation from product comparison to category versus category, where they could define the rules and measures of success.
- Focus on education over pure product marketing: Coalition recognized that their core challenge was an education problem - helping businesses understand cyber risks, insurance coverage, and the value of active risk management. This informed their go-to-market strategy across all channels.
- Leverage existing distribution channels effectively: Rather than building their own distribution network, Coalition convinced independent insurance brokers to adopt their new category of insurance by demonstrating 10x improvement over traditional products.
- Build category awareness through multiple channels: Coalition deployed a comprehensive strategy including webinars, in-person sessions, broker training, marketing materials, website content, and executive storytelling to establish their category.
- Ensure your category definition enables growth: When creating a new category, ensure it's either sufficiently broad to accommodate future expansion or intentionally narrow to drive focus. Coalition chose "active insurance" to allow expansion beyond cyber while maintaining their core differentiation.
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