BitSight Raises $23M In Series B Funding For Security Ratings Technology
BitSight Technologies has raised $23 million in Series B funding for its security ratings technology, the Cambridge, Mass.-based startup revealed Thursday.
BitSight offers a way for companies, including cyberinsurers and private equity firms, to rate the security performance of their own internal systems, as well as that of their peers, competitors and possible acquisition targets. Using publicly accessible information, such as threat intelligence, data hygiene and publicly disclosed breaches, BitSight compiles billions of records a day from a variety of sources, then correlates the records into a security rating for the target company.
The latest round of funding brought on new investor Comcast Ventures, which joined Menlo Ventures, Globespan Venture Partneres, Commonwealth Capital Ventures, Shaun McConnon (the company's CEO) and Flybridge Capital Partners. The $23 million in Series B funding brings the company's total funding raised to $49 million.
"We had excellent execution in the last year and half that we've been in the market," Executive Vice President of Sales and Marketing Tom Turner said in an interview with CRN. "We're very happy to get such a vote of confidence from our existing board members as well as Comcast as a new investor. The funding takes us, we believe, all the way to our goals. ... This is a way to get to the very large organization we believe we will become, based on the market opportunity we see."
BitSight has been on a strong growth trajectory since it entered the market, this June tripling its revenue year over year, the company said. The new funding will be used to continue that growth, Turner said, primarily around fueling its global expansion. Over the past year, BitSight has focused primarily on the North American market, but Turner said it is now looking to bet bit on the European and Asia Pacific markets over the next year. That expansion includes boosting its sales force in the regions and evaluation possible acquisition targets that make sense in the region, adding to BitSight's October acquisition of Portugal-based AnubidNetworks.
Turner said BitSight is also focused on growing its channel program, which he said will have grown from 10 percent of the company's revenues to an estimated 40 percent by the end of the year.
"I have goals to take it higher, and so does Shaun [McConnon], our CEO," Turner said. "It's going to play a bigger and bigger part of our go-to-market and we're already starting to see the results."
To do that, Turner said, BitSight plans to double the size of its dedicated channel team over the next few months. On top of that, he said, the company is adding a dedicated channel marketing component to the program, building on its current offerings, including MDF, partner communications and partner training.
With those expansions, Turner said, he hopes channel partners will expand how they view the company, seeing the BitSight tool as an opportunity to create sales as customers look to improve their ratings. As BitSight is an independent auditor, Turner said, those opportunities to upgrade security will fall to the partner.
Dave Dalva, vice president at full-service risk management company Stroz Friedberg, said his company has been using BitSight for more than two years as a part of its comprehensive solution. Dalva called the BitSight solution "innovative" and the company a "good partner."
As the company pulls in more venture capital money, Dalva said, he would like to see more marketing support for partners and a more visible tandem go-to-market approach.
"I would like to expand our partnership," Dalva said. "I'd like to see us become more visible together."
PUBLISHED JUNE 25, 2015