BitSight raises $40 million to help companies rate partner firms’ cybersecurity credentials

Security ratings company BitSight has raised $40 million in a Series C round led by GGV Capital, with participation from Flybridge Capital Partners, Globespan Capital Partners, Menlo Ventures, Shaun McConnon, and the VC divisions of Comcast Ventures, Liberty Global Ventures, and Singtel Innov8.

Founded in 2011, BitSight offers a platform that helps companies mitigate security risks associated with sharing sensitive data with business partners. It does so by collating and analyzing a wealth of data related to companies’ activities and allocating security scores accordingly. It’s similar to the way credit ratings work in the consumer realm, insofar as it’s based on information that’s already available, and the process is entirely automated.

BitSight’s latest cash influx takes its total funding to $95 million, and the company says it will now ramp up its expansion, forge partnerships around the world, and pursue acquisitions.

“Our customers vote with their checkbooks, as do investors who see our future,” said BitSight CEO Shaun McConnon.

We have now raised $95 million over the past three years, and with $60 million in the bank and 450 customers, 60 of whom are Fortune 500’s, BitSight’s growth is accelerating. We intend to add an additional 100 people to our current staff over the next 15 months, with a strong focus on engineering and sales. We will increase our brand, double our sales, and solidify BitSight as the global standard in security rating services. We have the people, the products, and the cash to accomplish these goals.

Cybersecurity has emerged as a major target for investors in recent years, with a number of deals closing in the past few months alone. SafeBreach recently raised $15 million for a platform that simulates hacks on companies’ systems to identify vulnerabilities, while SecurityScorecard closed down $20 million for its security rating and risk-monitoring platform. Some have contended that breach analytics is the next billion-dollar industry, and if that’s the case, BitSight could be well-positioned to capitalize on the opportunity, as it serves companies looking to assess the security risk posed by potential partners.

“The extremely positive feedback we received from CISOs (chief information security officers), security professionals, and other industry insiders regarding BitSight’s market leading technology, growth, and customer adoption fueled our excitement to proactively lead this financing,” added Glenn Solomon, managing partner at GGV Capital. “BitSight has created what Gartner is now recognizing as the Security Ratings Services market. As more awareness around this technology is created, and as BitSight continues to build out the infrastructure for a world-class security ratings agency, they are poised for great success.”

As a result of its investment, Solomon will also join the BitSight board of directors.