Hyperproof, a compliance software provider, today announced that it has raised $ 16.5 million in a Series A financing led by Toba Capital to a post-currency valuation of $ 72.5 million. dollars. The company says it will use the new capital to support product R&D and increase its workforce as it seeks to expand into new markets.
The need for risk and compliance management solutions is growing as businesses move their operations to digital channels. Following over 900 regulatory agencies released over 200 combined regulatory updates every day, on average, in 2017. Unsurprisingly, many companies do not feel equipped to meet the challenges from a talent or technology perspective . According to a investigation According to the Financial Times Group, 57% of senior executives rank “risk and compliance” as one of the top two categories of risk they are least willing to manage.
Hyperproof was founded in 2018 by Craig Unger, whose previous startup – cloud-based automation company Azuqua – was acquired by Okta in 2019. Hyperproof offers a software compliance operations platform as a service (SaaS) that allows customers to track and manage the organization. risks, such as supplier risks, on an ongoing basis. Using collaboration tools and workflows as well as integrations with cloud services like Amazon Web Services, Microsoft Azure, and Google Cloud Platform, team members can take advantage of Hyperproof to perform tasks such as collecting evidence, building dashboards and creating reports for over 50 frameworks including FedRAMP, SOX and CSA.
“The pandemic has really underscored the importance of maintaining strong safety and compliance programs for the leaders of organizations, as it has made a number of risks greater and introduced new risks,” Unger told VentureBeat by email. “For example, like [society] Shifting to mass remote work, security teams have had to keep cybersecurity in such a radically different environment and implement new security controls. The move to remote work meant that compliance work also had to be done remotely. Because Hyperproof supports … collaboration between compliance professionals and business units, compliance professionals have found it to be a valuable platform that has helped them do their jobs efficiently .
Applying AI to Compliance
Hyperproof supports compliance projects and comes with a risk register and location for tracking an organization’s suppliers and performing supplier assessments. Using Hyperproof, organizations can document risk mitigation plans, map risks against controls and compliance requirements, and examine software and technology vendors to assess their compliance and level of compliance. security.
“[Hyperproof can map] between different standards and compliance frameworks, so that work such as designing, implementing and testing controls and gathering evidence can be streamlined as much as possible, ”Unger said. “[The platform keeps] the people responsible for carrying out security and compliance tasks, [streamlines] preparing for audits and effectively complying with multiple standards and frameworks, [and] automate[s] collecting and testing evidence.
In the coming months, Hyperproof plans to launch an environmental, social and governance software product designed to help organizations run their businesses more sustainably while meeting reporting requirements. Beyond that, the 51-employee startup is investing heavily in automation solutions powered by AI and machine learning technologies.
“Hyperproof plans to leverage machine learning to help our users automatically identify and report overlapping requirements in various compliance frameworks, so they can see areas where they already meet the requirements and reuse their requirements. compliance artifacts to meet the new requirements, ”Unger said. “[In addition, we] will use [AI] to tackle an area of compliance that is really tedious: Gather [compliance] evidence from different systems to show auditors that internal controls designed to improve safety and mitigate risk were working properly and effectively… In 2022, we plan to [tap] machine learning to automatically identify opportunities for our users to set up integrations that will pull compliance data from third-party systems into Hyperproof.
In addition, Hyperproof aims to develop algorithms that intelligently analyze the content of evidence attached to internal policies implemented in a company’s account. The algorithm will examine the evidence against a specific user-defined parameter or range of values to see if the evidence is within or outside that acceptable range. According to Unger, Hyperproof is also exploring machine learning to help users assess how prepared they are for an upcoming compliance audit. The objective is to analyze user activities, such as the number of policies implemented and the number of requirements to which functional controls are linked in order to generate a readiness score that will be updated in real time.
“We plan to leverage machine learning in our products in a number of different ways, both to eliminate much of the repetitive work that compliance professionals face today and to present users with meaningful information about risks so they can make better, more strategic decisions. ”Unger continued. “This will not only save compliance professionals hours each month, but it will also give organization leaders peace of mind knowing that the system automatically detects problems as they arise and alerts the right people. . “
Hyperproof, based in Bellevue, Wash., Competes with Vanta, LogicGate, MetricStream and others in a global market for corporate governance, risk and compliance solutions estimated at $ 35.1 billion. dollars in 2020, according to at Grand View Research. But Hyperproof says it’s on track for 400% year-over-year growth through contracts with customers like Sophos, ForgeRock, AppGate, Fortinet, 3M and Motorola Solutions.
Existing investors participated in Hyperproof’s last round, bringing the company’s total raised to $ 26.5 million. Hyperproof previously closed three rounds for a total of $ 10 million.
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