"A year after publicly launching in Denver, the fast-growing CyberGRX plans to announce Tuesday that it received $20 million in an investment round led by Silicon Valley’s Bessemer Venture Partners.
The Denver startup, which raised $9 million last year, attributes its momentum to a chore that more companies are required to do: making sure their vendors, suppliers and third-party partners are secure themselves.
The idea is to avoid a repeat of Target’s 2013 credit card data breach, when hackers stole the credentials of an heating and air conditioning vendor to gain access to the retailer’s network. CyberGRX created a place to share threat assessments, saving companies time and effort as they make sure those they let into their network are up to the task.
“We don’t necessarily say these guys are good, but rather, here’s all the information you need to make a decision as to the level of risk you would make,” said Fred Kneip, CyberGRX co-founder and CEO.
The growth caught the attention of Bessemer, one of the oldest venture capital firms in Silicon Valley.
“For an enterprise today, managing cyber risk requires visibility into the extended network of vendors who store information about us,” David Cowan, a partner at Bessemer who will join CyberGRX’s board of directors, said in an email. “The CISO (chief information security officers) we surveyed overwhelmingly look to CyberGRX to help them identify, assess and remediate cyber risks in their extended networks.”