RiskLens, a developer of software for assessing, communicating, and managing cyber risk, announced Monday it has raised more than $20 million from investors.
Spokane, WA-based RiskLens says it plans to use some of the proceeds from the Series B funding round to expand its sales, marketing, engineering, and professional services teams. They’ll work to try to capture a larger portion of the global market for cyber security products and services, which is expected to be worth more than $180 billion by 2021, according to a projection by Zion Market Research.
Washington D.C.-based Paladin Capital Group led the round. Joining Paladin were two other organizations that had backed RiskLens previously: Philadelphia-based Osage Venture Partners and Dell Technologies Capital, which is headquartered in the Bay Area. Other participants included new investors F-Prime Capital Partners and MassMutual Ventures, both based in the Boston area.
RiskLens says its software helps customers establish quantitative, financially oriented programs for managing cyber risk. The company’s products are designed help companies’ executives and cyber risk teams prioritize cyber security initiatives, in part by quantifying the risks they face in monetary terms.
“There continues to be a dire need for managing and communicating cyber risk at the executive level in large enterprises,” Gaurav Tuli, a partner at F-Prime Capital, says in a prepared statement.
Quantifying cyber risk has long primarily been the domain of academics and companies that sell cyber insurance policies, according to a 2018 report by Global Cyber Risk Quantification Network. However, that’s changing; the report notes that “utility companies, banks, corporations, and governments are increasingly using quantification approaches.” RiskLens could continue to be among the beneficiaries, as more organizations consider paying for digital tools to quantify—and limit exposure to—cyber risks.
RiskLens says nearly one-third of the largest 1,000 US corporations, as measured by annual revenues, use its software. According to its website, RiskLens’ clients include Doordash, E-Trade (NASDAQ: [[ticker:ETFC]]), Fannie Mae, and Sutter Health.
Another RiskLens customer is MassMutual (short for Massachusetts Mutual Life Insurance Company), which operates MassMutual Ventures.
According to a report Insurance Journal published in January on trends in cyber security, some insurers are “realizing they have un-quantified exposures” and are now looking for products they can use to quantify them. Part of the goal is limiting the financial damage of future events resembling the 2017 ransomware attack on FedEx (NYSE: [[ticker:FDX]]), Maersk, and other businesses. It’s estimated the attack will cost the insurance industry up to $3 billion, according to the Insurance Journal report.
RiskLens previously raised $5 million from investors in a Series A funding round two years ago.
