RCS - DynaRisk - Cyber Threats in London VC-Backed Companies

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09/08/2023 15:15

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RNS Number : 8353I  DynaRisk  09 August 2023

Venture Capital Investments at Risk: DynaRisk Identifies Critical Cybersecurity Gaps in Companies Backed By Some Of London's Biggest VC Funds

 

DynaRisk (https://www.dynarisk.com/) , the intelligence-led cybersecurity
software company, has released a ground-breaking report exposing the
concerning cyber posture of the portfolio companies of leading Venture Funds
with a presence in London. The report highlights severe cybersecurity issues
within portfolio companies and aims to raise awareness among fund managers
about the urgent need to incorporate cyber risk monitoring as an essential
part of their due diligence and portfolio company monitoring processes.

"The urgency for comprehensive cyber risk monitoring has never been clearer"

DynaRisk's analysis encompassed 5,482 companies within these venture capital
portfolios. Shockingly, the report revealed that every single one of these
companies had cybersecurity issues that could leave them exposed, with 65%
(3,565) exhibiting 'High' rated Risk Signals, and 8.6% (470) exhibiting
'Critical' risk signals. These alarming statistics indicate that every VC fund
has a number of companies in its portfolio that are highly susceptible to
cyber attacks. Examples of risk signals can include data breaches, the use of
outdated and vulnerable software, and indications of hacker chatter on the
dark web. These issues are well-known drivers of hacking activity.

A successful cyber attack can cause a potentially existential risk to a
business by impacting its ability to operate, damaging its reputation or
suffering large financial losses from hundreds of thousands to millions of
pounds. A successful cyber attack can lead to greatly reduced shareholder
value due to declining revenue from the loss of customers, loss of
intellectual property and the risk of the company being hit with regulatory
fines and lawsuits.

One particularly notable case from DynaRisk's research involved a fintech
portfolio company. In November 2020, DynaRisk observed a critical
vulnerability in the company's system. Subsequently, in February 2021, the
company announced a £5.5 million fundraise led by a UK VC fund, and in May
2021, the portfolio company fell victim to a ransom attack.

"Had this fund been monitoring the company for cyber risks during the due
diligence stage or after joining the company's board, the hack could have been
prevented, and the risks to the business greatly reduced," said Andrew Martin,
CEO of DynaRisk. "The fund had a total of 139 days to identify the issue and
help the portfolio company fix it."

The need for comprehensive cyber risk monitoring has never been clearer.
DynaRisk's cyber risk monitoring software, Breach Check, empowers fund
managers to safeguard their investments, supporting them in maximising secure
growth, minimising risk and leveraging the insights generated to increase
engagement with management teams.

DynaRisk is dedicated to bridging the gap in the market for simplified and
accessible cybersecurity solutions supported by robust threat intelligence.
The company's suite of cybersecurity software, including Cyber Xpert, Breach
Defence, and Breach Check, supports over 20 clients protecting hundreds of
thousands of consumers and thousands of businesses globally.

To request a free copy of the report and view the risk profile of VC portfolio
companies, visit
https://dynarisk.com/resources/resource-centre/uk-eu-venture-capital-portfolios
(https://dynarisk.com/resources/resource-centre/uk-eu-venture-capital-portfolios)
or get in touch with DynaRisk at info@dynarisk.com.

For more information on DynaRisk's software, head to https://dynarisk.com
(https://dynarisk.com/)

DynaRisk analysed the portfolio companies of the following funds for this
report: A-Z

Albion Capital, Amadeus Capital, Anthemis, ARIE Capital, Ascension Ventures,
Augmentum Fintech Management, Axc (axeleo Capital), Basinghall, Better
Ventures, BGF, Britbots, British Design Fund, Cherry Ventures, Committed
Capital, Concept VC, Cornerstone, Deepbridge Capital, DSW Ventures, EMV
Capital, Endeavour Ventures, Episode 1, Exponential Group, Finch Capital,
Flint Capital, Fom venture Capital, Foresight, Forward, Fuel Ventures, Hambro
Perks, Hoxton Ventures, Hummingbird, Imbiba, Impact Venture, Index Ventures,
InReach Ventures, Insurtech Gateway, IW Capital, Jam Jar Investments, Jenson
Funsing Partners, Kelvin Capital, Kindred, KPN Ventures, Martlet Capital,
Maven, Mayfair Equity, Mercia, MMC Ventures, Molten, Moonfire Ventures,
Moscar, NBS Ventures, Newable, Northzone, o2h Ventures, Octopus Ventures,
Omnes Capital, Oxford Technology, Parkwalk, Portage, PROfounders Capital, QED,
QVentures, RCP, Redline Capital Management, SFC Capital, Speedinvest,
SuperSeed, Sure Ventures, Sway Ventures, Symvan Capital, Syndicate Room, The
SidebySide Partnership, Triple Point Ventures, TrueSight, Worth Capital.

 

Press Contact:

 

DynaRisk +447715767839 paul@dynarisk.com https://www.dynarisk.com/
(https://www.dynarisk.com/)

 

Press Image:

 

https://pressat.co.uk/media/uploads/7138dedc02a3afe325a65783f1c9c39f.png

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