Cybersecurity ratings firm BitSight has raised $60 million in a Series D funding round.
The round, led by Warburg Pincus and joined by existing investors Menlo Ventures, GGV Capital and Singtel Innov8, brings total disclosed investment in the company since its foundation in 2011 to $151 million.
Though BitSight did not disclose its valuation, TechCrunch reports that comments by CEO Tom Turner suggest that the company is worth approximately $600 million.
With ever-increasing security threats, cybersecurity ratings are becoming an important part of leading companies’ cyber-defense.
– Cary Davis, Managing Director, Warburg Pincus
“When BitSight introduced the first Security Ratings Platform in 2011, we set out to transform how businesses evaluate risk and security performance,” said Turner. “Over the last seven years, we’ve continued to deliver on this promise, providing tens of thousands of users with the deep insight needed to minimize risk within their environment. We know this is just the beginning, as there is still more work to do in continuing to establish a global standard for cyber security risk decisions. I am delighted to partner with Warburg Pincus as they have a very successful history of investments in cyber security, information services and global ratings agencies.”
The company claims to have over 1,200 customers worldwide, including 7 of the top 10 cyber insurers, 20% of Fortune 500 companies, and 3 of the top 5 investment banks. According to BitSight, the new investment will be used to continue global expansion and expand its portfolio of risk management solutions.
“With ever-increasing security threats, cybersecurity ratings are becoming an important part of leading companies’ cyber-defense. BitSight created the category and is the leader in the security ratings market, with a proven approach and platform to help customers continuously and effectively monitor cyber risk in their business ecosystem,” said Cary Davis, Managing Director of Warburg Pincus, who will be joining BitSight’s board of directors. “We believe there is tremendous opportunity for BitSight globally, and we look forward to working with Tom and the rest of the talented management team in the company’s next phase of growth.”
Warburg invested in the future of security ratings, and that future is BitSight.
– Shaun McConnon, Executive Chairman, BitSight
Given recent headlines about the role of third party suppliers in high-profile breaches (Ticketmaster, for example), and the “promising but problematic” cyberinsurance market, security ratings are likely to become more and more important. Gartner predicted last year that by 2022, security ratings will become as important to managing business relationship risk as credit ratings, and may become mandatory when evaluating which third parties to work with.
Other companies operating in the space have also sprung up, though BitSight’s claim to be the most widely used platform is as-yet unchallenged.
“Warburg Pincus has a proven track record of investing in successful and impactful technology companies, led by outstanding management teams,” said Shaun McConnon, Executive Chairman of BitSight’s board. “Their investment in BitSight is not only evidence of our market leadership and the long-term value of our security ratings platform, but also the steadfast leadership of our accomplished executive team and their ability to execute. Warburg invested in the future of security ratings, and that future is BitSight.”