SecurityScorecard Raises $180 Million in Series E Financing Round to Make Security Ratings Mainstream
SecurityScorecard, the global leader in security ratings, announced today that the company has 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.
SecurityScorecard offers the market leading platform for security ratings and is utilized globally by thousands of companies including 7 of the top 10 pharmaceutical companies, 4 of the top payment processors and more than 10 of the world’s top insurance companies. The company’s strong growth has been accompanied by expanding use cases across vendor risk management, self-monitoring, board reporting, cybersecurity insurance underwriting, and M&A due diligence.
Since its last round of funding in June 2019, SecurityScorecard demonstrated significant global traction for its security ratings. The funding will accelerate SecurityScorecard’s rapid global expansion and growth, supporting the high demand for SecurityScorecard’s security ratings platform, which has increased in the aftermath of several significant supply chain attacks and corresponding increased regulatory attention on cyber oversight of suppliers.
“With the increasing number of breaches, cybersecurity ratings are a must-have for organizations to make critical business decisions,” said Dr. Aleksandr Yampolskiy, CEO and co-founder of SecurityScorecard. “The size and caliber of this financing is a testament to the confidence that our existing and new investors have in SecurityScorecard. We have seen a fundamental shift in budgets to cybersecurity ratings and have passed the tipping point where the depth of our data and network effects are driving broad market adoption.”
The new round of funding will further accelerate SecurityScorecard’s corporate growth with planned investments across new product lines, global expansion, a broadening partner ecosystem and additional functionality to assess and mitigate cybersecurity risk in novel ways.
SecurityScorecard also announced that it 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 customers increasingly span 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. SecurityScorecard also added over 450 new logos 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)
- Global recognition: SecurityScorecard has been recognized by Forrester Research, Inc. as a Leader in The Forrester New Wave™: Cybersecurity Risk Rating Platforms, Q1 2021 report; recognized as a Customers’ Choice in the 2021 Gartner Peer Insights ‘Voice of the Customer’: IT Vendor Risk Management Tools; recognized as a ‘2020 Technology Pioneer’ by the World Economic Forum for contributions to the cybersecurity industry and awarded multiple accolades over the past year”
“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.”
“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.”
J.P. Morgan Securities LLC served as the sole placement agent for SecurityScorecard. For more information on SecurityScorecard’s funding round, please see here.