Data Privacy Startup Hyperproof Raises $4 Million Seed Round - Identity Review - Identity Review | #1 Digital Identity Reviews & News

Data privacy has become an increasingly central part of company workflows. Apple recently required “Nutrition Labels” on their app that communicate to users how their data will be shared. The EU enacted the GDPR in 2018 and has already levied billions of dollars of fines on the world’s largest corporations. The California state legislature passed the CCPA in 2018, the most aggressive set of data privacy regulations in the U.S.

Hyperproof, a Seattle-based security and compliance startup, aims to help companies manage these burgeoning regulations. The company recently closed a $4 million seed round and has now raised $10 million in total funding to-date.

What Problem Is Hyperproof Trying to Solve?

In an article announcing their fundraising in Security Boulevard, Hyperoof describes the importance of ensuring compliance with new privacy regulations and protecting consumer data from cyberattacks.

“The cost of making mistakes has risen: privacy regulators handed out a record number of fines for GDPR violations to companies that failed to keep their customers’ data safe. Additionally, US agencies and corporations were recently targeted by a significant coordinated cyberattack believed to be the work of powerful state actors.”

Given how new the data privacy market is, Hyperproof believes that most of their competition is the status quo “ad-hoc” system involving spreadsheets, email and generic document storage.

“Today, the vast majority of the work [in infosec] is done manually, with ad-hoc tools like spreadsheets, email and cloud-based file storage systems. Hyperproof’s December 2020 survey of 1029 IT compliance professionals found that a full half of respondents spend 50% or more of their work time on low level administrative tasks leaving little time for the important work of monitoring and updating controls—creating vulnerabilities for attackers to exploit.”

Hyperproof’s Solution: The System of Record for Regulatory Compliance

Hyperproof aims to build a vertical SaaS product that is now familiar across many industries. The company wants to centralize all data silos into one accessible layer and be the system of record for all compliance operations.

The company calls this new platform the “Compliance Operations Command Center.” Hyperproof compares its product to how sales teams use Salesforce or how HR teams use Workday. The software will enable companies to manage compliance, regulatory timelines and projects in one place. Hyperproof has already closed an impressive set of clients, as Netflix, Chime and UiPath all use the platform according to their website.

Carl Lombardi, VP of Operations at Prime8 Consulting, one of Hyperproof’s clients, noted in an interview with Geekwire that Hyperproof helps his firm stay on top of regulatory deadlines.

“With Hyperproof, we no longer need to remind ourselves to do specific compliance tasks; the system flags items that are about to expire, helping me keep up with my reviews of controls and evidence.”

Compliance Operations Command Center

Source: Hyperproof.io

Future Expansion in the Data Compliance Space

The data governance market has been growing rapidly, and is projected to be worth $5.7 billion by 2025. Seattle is home to a number of successful startups in the space. Vouched, a Seattle-based startup that provides a secure API for facial identification, closed a $3 million seed round in December.

Hyperproof is also not the first foray into the digital identity space for Craig Unger, founder and CEO of Hyperproof. His last startup, Azuqua, a no-code cloud integration company that focused on identity-centric processes like user onboarding and offboarding, was acquired by Okta for $52.5 million in 2019. With a successful exit already under his belt and new cash on hand, Hyperproof has significant momentum to fulfill its vision: helping organizations keep the promises they make by streamlining the compliance process.

ABOUT THE WRITER

Quinn Barry is a Tech Innovation Fellow from Stanford University covering innovations in digital privacy across finance and government.

Contact Quinn Barry at quinn@identityreview.com.

Do you have information to share with Identity Review? Email us at press@identityreview.com.

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