Hyperproof, which provides software as a service, on Wednesday, August 30, announced that following the results of a funding round led by Riverwood Capital and with the participation of the venture capital firm Toba Capital, which is at an early stage of development, it managed to raise $40 million.
Hyperproof co-founder and CEO Craig Unger says that after the last round of financing, the total amount of funds ever raised by the company has reached $66.5 million. According to him, due to the new investments double the firm’s valuation compared to the indicator of nine months ago.
Craig Unger stated that compliance is one of the most sustainable sectors of the technology industry, which raises significant financial injections and stimulates the introduction of important innovative solutions. According to him, this state of affairs is due to the fact that the pace of adoption by regulators of new laws and ratification of new compliance regimes, despite the economic downturn, has accelerated. He also believes that the corporate sector is showing a growing interest in compliance as a service as new regulations come into force, including data privacy rules.
Data from the National Conference of State Legislatures show that since the beginning of this year, at least 25 regions of the United States and Puerto Rico have submitted or considered about 140 consumer protection bills. At the same time, a Cybersecurity Act came into force in the EU, which tightened the requirements for companies storing personal information. The U.S. Securities and Exchange Commission has published new data disclosure rules.
Against the background of tightening the policy of regulators, the number of enterprises that are trying to form something like a culture of compliance with legal requirements is increasing. The results of special surveys indicate that more than half of the employees of internal control services are faced with the inability to effectively perform their functions due to changes in the regulatory framework.
Craig Unger, who previously worked at Microsoft on the development of Windows Live ID, said that he was inspired to create Hyperproof, as he put it, by destructive audits, which often became an obstacle to the implementation of his efforts to create a product. Currently, his company provides a compliance data accounting system and a collaboration and workflow management system. The firm’s goal in the foreseeable future is to automate tasks that are not included in the list of strategic compliance standards for approximately 85 compliance and management systems.
Hyperproof has several software modules that are designed to support various types of risk management and compliance work.
Craig Unger says that Hyperproof, which integrates with platforms including AWS, Google Cloud, GitHub, and Cloudflare, and task management applications such as Jira, Asana, and ServiceNow, uses heuristics and artificial intelligence to scale workflows. According to him, the algorithms and rules applied in this case are aimed at preventing duplication of work and also creating new links between user data and compliance modes.
The main competitors of Hyperproof are Cypago, which offers tools for automating management processes and compliance with regulations, and Osano, a platform for data privacy management. However, competition is not an obstacle to the development of the company. Since the beginning of this year, the firm’s customer base has increased by 130% compared to 2022. The company’s revenue for the same period showed an increase of 260%. Craig Unger says that hundreds of firms are currently using Hyperproof to optimize workflows that involve risks and compliance with regulatory requirements. Among the company’s clients are Motorola, Nutanix and 3M.
Craig Unger is of the opinion that audits are crucial. According to him, many organizations have realized that compliance work can be used on a broader scale, including to understand and eliminate risks.
The head of the company said that the funds received during the financing round will be spent on expanding the Hyperproof platform and increasing the number of employees. He also stated that the firm intends to expand the scope of its activities and develop partnerships.
As we have reported earlier, Technology Platform Apollo.io Raises $100 Million.