Cybersecurity rating and risk-monitoring platform SecurityScorecard has raised $27.5 million in a series C round of funding led by Nokia’s global venture capital (VC) arm, Nokia Growth Partners (NGP).
Other notable participants in the round include GV (Google Ventures) — which led the company’s $20 million series B round last June — Intel Capital, Sequoia Capital, Moody’s Corporation, AXA Strategic Ventures, Boldstart Ventures, Two Sigma Ventures, and Evolution Equity Partners.
Founded out of New York in 2013, SecurityScorecard helps organizations monitor key security risks around their cloud-based systems by identifying vulnerabilities from a hacker’s perspective. The platform also looks at third-party vendors a company is doing business with to find any weaknesses on their side. SecurityScorecard then assigns ratings from “A” to “F” to help security personnel address the most pressing vulnerabilities and evaluate partnerships.
If a company’s third-party vendor is given an “F” rating, for example, indicating it is more likely to be breached, the company may consider switching providers.
“Our vision is to create a new language for how companies strategically address, collaborate on, and measure the cybersecurity posture of their entire ecosystem through security ratings,” noted SecurityScorecard founder and CEO Dr. Aleksandr Yampolskiy. “These ratings can be used to report back to the board of directors, continuously monitor third and fourth parties, and more intelligently underwrite cyber insurance policies.”
SecurityScorecard had raised around $35 million before now, and with its latest tranche of funding the company said it plans to “bring new solutions to the market” and expand its “position as the security ratings leader,” according to a statement.
With the massive Equifax data breach still fresh in everyone’s minds, and the global cybersecurity workforce estimated to be short by nearly 2 million people by 2022, it perhaps comes as little surprise that cybersecurity has emerged as a major focus of investment. Just yesterday, Attivo Networks announced a $21 million raise to help thwart cyberattacks using the art of deception, while Darktrace recently raised $75 million and SentinelOne nabbed $70 million.
SecurityScorecard, however, is tackling things from a slightly different perspective by focusing on factors usually outside a company’s direct control, namely, their partner organizations.
“As the world becomes increasingly reliant on the cloud, third-party service providers, and highly distributed infrastructure, enterprises have less visibility and control over mission-critical services, as well as their proprietary and customer data,” added NGP partner Upal Basu. “The SecurityScorecard platform is uniquely positioned to help enterprises gain visibility and control across their IT ecosystem.”
As a result of NGP’s investment in SecurityScorecard, Basu will also be joining the company’s board of directors.