Posted by Michael Reedy on April 18, 2017
DENVER– CyberGRX, the provider of the most comprehensive third-party cyber risk management platform, today announced that it has raised $20 million in Series B funding led by Bessemer Venture Partners (BVP). CyberGRX’s existing investors also participated in the round, including Aetna Ventures, Allegis Capital, ClearSky, GV (formerly Google Ventures), MassMutual Ventures, Rally Ventures, TenEleven Ventures, and several other strategic investors. CyberGRX will use the funding to accelerate adoption of the CyberGRX Exchange, the world’s first global third-party cyber risk management (TPCRM) exchange.
As enterprises’ digital ecosystems grow and become increasingly interconnected, the volume and complexity of security and resiliency risks from third parties, including contractors, vendors, partners, and customers, only grows. According to PwC’s 2016 Global State of Information Security report, third-party contractors are the biggest source of security incidents outside of a company’s employees. At the same time, the third-party cyber risk management process is largely driven by sharing spreadsheets and trusting unvalidated assessments. Built in partnership with the chief security and risk officers from some of the world’s largest companies, including Aetna, ADP, and MassMutual, the CyberGRX Exchange brings massive efficiency to this process while providing boardroom-level information about real-time cyber risk exposure across an enterprise’s entire ecosystem of third parties.
“For an enterprise today, managing cyber risk requires visibility into the extended network of vendors who store information about us,” said David Cowan, the BVP partner joining CyberGRX’s board of directors. “The CISO’s we surveyed overwhelmingly look to CyberGRX to help them identify, assess and remediate cyber risks in their extended networks.”
Launched in March 2017, the CyberGRX Exchange is designed to make it simple and cost effective for enterprises to get up-to-date, comprehensive, one-click access to their third parties’ cyber risk assessments. It is purpose-built to transform companies’ third-party cyber risk management processes from a compliance-based to a risk management-based approach. For third parties, the CyberGRX Exchange is designed to make it easy to complete one updated cyber risk assessment and share it with their many upstream partners. The CyberGRX Exchange delivers standardized assessments, actionable analytics, remediation management and real-time threat intelligence updates to enterprises and their third parties, enabling them to mitigate risk, reduce costs and manage process complexity.
“There’s a simple question at the heart of third-party cyber risk: which vendors, partners, suppliers or contractors pose the biggest threat to my organization?” said Fred Kneip, CyberGRX CEO. “The answer isn’t usually as simple because it’s constantly changing. We’ve developed the world’s first and only global third-party cyber risk exchange, which will continuously answer that question and provide actionable recommendations and the tools for companies to effectively manage that risk. This capital from Bessemer Venture Partners and our existing investors will help us scale the business around the CyberGRX Exchange to meet growing demand from enterprises and third parties who’ve grown tired of the status quo. The relationships we have with key investors, customers and design partners put CyberGRX in the pole position to be the new industry standard for third-party cyber risk management.”
Founded by former CISO’s and risk officers and backed by world-class investors, CyberGRX partners with some of the most trusted names and brands in cybersecurity. With this investment, David Cowan joins the CyberGRX board of directors. Also forming part of the board are: Bob Ackerman, founder, and managing director at Allegis Capital; Jay Leek, managing director at ClearSky; Mark Hatfield, founder, and general partner at TenEleven Ventures; Stuart McClure, CEO at Cylance and Fred Kneip, CEO at CyberGRX.
CyberGRX provides the most comprehensive third-party cyber risk management platform to cost-effectively identify, assess, mitigate and monitor an enterprise’s risk exposure across its entire partner ecosystem. Through automation and advanced analytics, the CyberGRX solution enables enterprises to collaboratively mitigate threats presented from their increasing interdependency on vendors, partners, and customers. Based in Denver, CO, CyberGRX is backed by Allegis Capital, Bessemer Venture Partners, Blackstone, ClearSky, GV (formerly Google Ventures), MassMutual Ventures, Rally Ventures, TenEleven Ventures, and several other strategic investors.