BitSight, a startup that assesses the likelihood of an organization being breached, received a $ 250 million investment from credit rating giant Moody’s and acquired Israeli cyber-risk assessment startup VisibleRisk for a fee. disclosed.
Boston-based BitSight says the investment from Moody’s, which has long warned that cyber risk can impact credit ratings, will allow it to create a platform for cybersecurity risk, while the giant from the credit rating company said it plans to use BitSight’s cyber risk data and research. in all of its integrated risk assessment product offerings.
The investment values BitSight at $ 2.4 billion and makes Moody’s the largest shareholder in the company.
“Creating transparency and fostering trust is at the heart of Moody’s mission,” Moody’s President and CEO Rob Fauber said in a statement. “BitSight is the leader in cybersecurity ratings, and together we will help market players across disciplines better understand, measure and manage their cyber risks and translate them into cyber loss risk. “
Meanwhile, BitSight’s purchase of VisibleRisk, a cyber risk assessment joint venture created by Moody’s and Team8, brings deep cyber risk assessment capabilities to BitSight’s platform, enabling the startup to better analyze and calculate an organization’s financial exposure to IT risk. VisibleRisk, which has raised $ 25 million to date, says its “cyber assessments” are based on quantifying cyber risks, which allows companies to benchmark their cyber risks against those of their peers, and better understand and manage the impact of cyber risks. threats to their businesses.
Following the acquisition, BitSight will also create a risk management solutions division focused on delivering a suite of critical solutions and analytics to serve stakeholders including risk directors, senior executives and boards of directors. This division will be led by VisibleRisk co-founder and CEO Derek Vadala, who previously headed Moody’s cyber risk group.
Steve Harvey, President and CEO of BitSight, said the company’s partnership with Moody’s and its acquisition of VisibleRisk will expand its reach to “help customers manage cyber risk in an increasingly digital world.” .
BitSight was founded in 2011 and has raised a total of $ 155 million in outside funding, most recently closing a $ 60 million Series D round led by Warburg Pincus. The startup has just under 500 employees and more than 2,300 clients worldwide, including government agencies, insurers and asset managers.