SALT LAKE CITY, UT, RiskRecon, the fastest-growing company transforming management of third-party cyber risk, today announced it has raised $25 million in Series B financing.
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Led by Accel and joined by existing investors Dell Technologies Capital, General Catalyst, and F-Prime Capital, the global venture capital firm affiliated with Fidelity Investments, the round brings RiskRecon's total funding to more than $40 million. Existing individual investors Mickey Boodaei, Rakesh Loonkar, and Paul Sagan also participated in the round. In conjunction with the investment, Accel partner Nate Niparko will join the company's Board of Directors. RiskRecon will use the capital to meet increasing global market demand for third-party cyber risk management solutions.
"Third-party cyber risk is the single largest unchecked attack vector that sophisticated attackers are exploiting in some of the most damaging cyberattacks in recent years," said Kelly White, RiskRecon's CEO and Co-founder. "Current approaches to managing third-party cyber risk with annual questionnaires and intermittent, manual processes fall short because they cannot scale as organizations outsource more and more work to third parties as the result of trends such as globalization and cloud adoption. RiskRecon's proven, automated approach to identifying, understanding, and acting on third-party cyber risk delivers tangible value for all key stakeholders demanding closer oversight of risk within their organizations."
RiskRecon's customer base has nearly tripled in the last twelve months, as companies realize the benefits of the only continuous monitoring solution that delivers risk-prioritized action plans enabling precise, efficient elimination of their most critical third-party security gaps.
"RiskRecon's mission from day one has been to use the power of third-party risk management to improve the security of the Internet," said Eric Blatte, President and Co-founder of RiskRecon. "Since our founding in September of 2015, Global 2000 customers and other businesses have placed their trust in RiskRecon's technology to continuously assess the cyber security risks of their third parties as well as their own organizations. These customers include top companies across a variety of key global industries, including financial services, retail, technology, healthcare, energy, and pharmaceuticals. We are thankful for the customers and investors who have joined with us to build RiskRecon into a world-class technology company. In the next few years, the broader industry, including the mid-market, will be adopting third-party cyber risk products and RiskRecon is well-positioned to take advantage of this growing market demand."
"We are very proud to have Accel join our existing investors," White added. "Accel is the go-to venture capital firm for building a security company, as the early investor in companies like CrowdStrike, Tenable, and Netskope."
"Security has been a cornerstone category for Accel for a long time. As we talk to our CISOs, we see a growing need for third-party risk management as enterprises have become more intertwined with third-party service providers," said Nate Niparko, a partner at Accel. "Kelly and Eric are experts in this domain and have architected RiskRecon's products around actionable risk recommendations to make customers more secure. We believe RiskRecon is best-positioned to solve the problems in this category."
"Third-party risk management is the process of holding enterprises accountable to good security practices," White concluded. "As you improve the risk management of your third parties, you improve the collective security of the Internet. The work of third-party risk management is work for the greater good and we are proud to be part of it."
RiskRecon is headquartered in Salt Lake City, UT and is actively looking to expand its rapidly growing team of security professionals.
RiskRecon provides the world's fastest path to understanding and solving third-party cyber risk. RiskRecon's SaaS-based platform enables enterprises to understand the cyber risk performance of their vendors based on continuous discovery of vendors' systems and assessment of those systems against 39 security risk criteria. RiskRecon provides suggested risk prioritization of every issue surfaced based on issue severity and asset value. This risk contextualization enables customers to easily convert RiskRecon assessments into action, providing capabilities for customers to engage their vendors on the issues and themes that expose them to the greatest risk. Armed with RiskRecon, companies realize dramatically better risk outcomes, compressing the time required for analysts to assess and act on risk. Learn more at www.riskrecon.com.
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