SecurityScorecard is thrilled to announce today that we have completed a $180 million Series E preferred stock financing round with participation by new investors including Silver Lake Waterman, funds and accounts advised by T. Rowe Price Associates, Inc., Kayne Anderson Rudnick, and Fitch Ventures, as well as existing investors Evolution Equity Partners, Accomplice, Riverwood Capital, Intel Capital, NGP Capital, AXA Venture Partners, GV (Google Ventures), and Boldstart Ventures. This round brings SecurityScorecard's total funding to more than $290 million.
What this means for SecurityScorecard
The new round of funding will further accelerate SecurityScorecard’s corporate growth with investments across new product lines like deeper threat intelligence, global expansion, a broadening partner ecosystem, and added customer benefits and features to assess and mitigate cybersecurity risk in novel ways through a suite of products on top of our platform.
As the world grows more interconnected, security ratings are becoming a must-have -- for organizations to make critical business decisions -- and ratings were recently identified as a cyber risk metric by DHS’s CISA. We envision a world where SecurityScorecards is used by millions of companies worldwide to communicate to their Boards, by regulators who are investigating breaches, to make M&A diligence decisions, to hold suppliers accountable, and to become resilient themselves.
This investment allows us to do what matters most: deliver transformational value to thousands of companies and springboard innovation to the way organizations worldwide manage cyber risk.
SecurityScorecard has reached recent key milestones and received strong industry endorsements as the company has scaled:
- Nearly two million organizations are monitored and rated by SecurityScorecard daily with its proprietary web-scale architecture that supports ubiquitous distribution of its ratings. SecurityScorecard is on track to rate more than 20 million organizations by the end of 2021.
- SecurityScorecard has been recognized by Forrester Research, Inc. as a Leader in The Forrester New Wave™: Cybersecurity Risk Rating Platforms, Q1 2021 report.
- SecurityScorecard customers include 7 of the top 10 pharmaceutical companies, 4 of the top payment processors, and more than 10 of the top insurance companies.
- SecurityScorecard customers increasingly span across the globe. Despite the turbulent business climate, in Q4-2020, total international recurring revenue grew over 61% YoY and total international customers grew 89% YoY.
- Significant customer growth: over 450 new logos added in 2020 and several highly influential international alliance partners, including GM Sectec, IHS Markit, Diligent Corporation, Exiger, and Tomorrow Street (a joint venture between Vodafone and Technoport - Luxembourg government technology incubator)
- Strategically partnered with ISACs (information sharing and analysis centers), across multiple industries including retail and hospitality, healthcare, airline, automotive, national defense, aviation, and others. These associations offer SecurityScorecard's platform (at no charge and with expanded free access) to their members to improve their cyber resilience
- SecurityScorecard has been recognized as a Customers’ Choice in the 2021 Gartner Peer Insights ‘Voice of the Customer’, validating SecurityScorecard’s commitment to customer success
- Recognized as a '2020 Technology Pioneer' by the World Economic Forum for contributions to the cybersecurity industry and awarded multiple accolades including: 'Best Security Company of the Year' (over 150 staff) by American Cyber Awards; Top 100 Cybersecurity Startups of the Year by Cyber Defense Magazine and many more
- The only security ratings company partnered with leading cyber policy-related nonprofits, including the Institute for Security & Technology’s Ransomware Task Force, the Cyber Threat Alliance, and Defending Digital Campaigns. SecurityScorecard is also a premium partner of the Global Cyber Alliance (“GCA”) and offers free access to SecurityScorecard’s services in GCA’s cybersecurity toolkits for small businesses and for elections.
We’ve come a long way since we started the company in 2014 and accomplished much in a short time. With this new infusion of capital, we look forward to accomplishing even more.
What our investors say
Silver Lake Waterman: “Security ratings have become a key factor for organizations in understanding cybersecurity risk and have broad application across the enterprise and strategic decision-making. The depth of the SecurityScorecard data, integrations and platform has created a solid foundation with strong network effects to drive future growth,” said Shawn O’Neill, Managing Director at Silver Lake Waterman. “We are excited to partner with Alex and his team and invest in SecurityScorecard to further extend their market leadership position.”
Evolution Equity Partners: “SecurityScorecard’s business is uniquely positioned in the security ratings space with a product platform that is an indispensable tool for enterprises and insurance providers seeking to understand the security posture of their organization and third parties. We are impressed with the company’s entrepreneurial and progressive outlook on building a strong future,” said Richard Seewald, Managing Partner at Evolution Equity Partners. “This latest funding round indicates our strong support for their significant and sustainable growth moving forward as they continue to win against competition with their market-leading solution.”
Fitch Ventures: “The nature of credit risk is constantly evolving and cybersecurity risk is certainly becoming a more frequent and prominent consideration. Through Fitch Group's collaboration with SecurityScorecard, we can provide investors with additional insight into how to assess this risk,” said Shea Wallon, Managing Director, Fitch Ventures.
Kayne Anderson Rudnick: “Increasingly, digital corporate footprints have rapidly expanded the attack surface for cybercriminals,” said Chris Armbruster, Portfolio Manager for Kayne Anderson Rudnick. “SecurityScorecard has built a differentiated, scalable platform from the ground up that leverages machine learning to deliver insights vital to maintaining a secure IT infrastructure. It is this vision and ability to execute that provides us confidence that SecurityScorecard will become mission-critical to its customers and realize its potential as one of cybersecurity’s important technologies.”
Accomplice: “As a long-time investor, we’ve witnessed SecurityScorecard's technology and growth strategy elevate the company from startup to one of cybersecurity’s most sophisticated and promising privately held companies,” said Jeff Fagnan, founder, Accomplice. “The company’s current momentum is exciting, and we can’t wait to see what the future holds.”
NGP Capital: “SecurityScorecard’s cybersecurity risk ratings answers the call for global enterprises challenged with protecting its growing amount of sensitive information living both inside and outside of their network,” said Upal Basu, General Partner at NGP Capital. “We are impressed with SecurityScorecard’s ability to quickly scale its platform to rate millions of companies worldwide to see and mitigate such a large swath of global risk.”
J.P. Morgan Securities LLC served as the sole placement agent for SecurityScorecard.