DynaRisk, an intelligence-led cybersecurity software company, has released a report uncovering the concerning cyber posture of the portfolio companies of leading Venture Funds in London. The report flags that every single one of these 5,482 companies had cybersecurity issues, with 65% (3,565) exhibiting ‘High’ rated Risk Signals and 8.6% (470) exhibiting ‘Critical’ risk signals.
Examples of risk signals include data breaches, the use of outdated and vulnerable software, and indications of hacker chatter on the dark web.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, which can lead to a potentially existential risk to a business, such as damaging its reputation or suffering large financial losses.
DynaRisk’s research highlighted one particularly notable case which involved a fintech portfolio company. In November 2020, DynaRisk observed a critical vulnerability in the 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.
Andrew Martin, CEO of DynaRisk, commented: “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.”
The report serves as a call to action for fund managers to incorporate cyber risk monitoring as an essential part of their due diligence and portfolio company monitoring processes. To support this, DynaRisk has developed a suite of cybersecurity software, including Breach Check, which empowers fund managers to safeguard their investments and increase engagement with management teams.
DynaRisk has analysed the portfolio companies of various VC funds for this report, including Albion Capital, Amadeus Capital, Anthemis, ARIE Capital, and more. To view the risk profile of VC portfolio companies and request a free copy of the report, visit https://dynarisk.com/resources/resource-centre/uk-eu-venture-capital-portfolios.
A recent report from DynaRisk has exposed the concerning cyber posture of the portfolio companies of leading Venture Funds with a presence in London. Analysis of 5,482 companies revealed that every single one of them had cybersecurity issues, with 65% (3,565) exhibiting ‘High’ rated Risk Signals and 8.6% (470) exhibiting ‘Critical’ risk signals.
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. DynaRisk highlighted one particularly notable case which involved a fintech portfolio company. In November 2020, DynaRisk observed a critical vulnerability in the system, which subsequently led to a ransom attack in May 2021.
Andrew Martin, CEO of DynaRisk, commented: “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.”
The report serves as a call to action for fund managers to incorporate cyber risk monitoring as an essential part of their due diligence and portfolio company monitoring processes. To support this, DynaRisk has developed a suite of cybersecurity software, including Breach Check, which empowers fund managers to safeguard their investments and increase engagement with management teams.
DynaRisk has released a report uncovering the concerning cyber posture of the portfolio companies of leading Venture Funds in London. The analysis, which encompassed 5,482 companies, revealed that every single one of them had cybersecurity issues, with 65% (3,565) exhibiting ‘High’ rated Risk Signals and 8.6% (470) exhibiting ‘Critical’ risk signals.
These issues are well-known drivers of hacking activity, which can lead to a potentially existential risk to a business. DynaRisk highlighted one particularly notable case, which involved a fintech portfolio company that fell victim to a ransom attack due to an observed critical vulnerability.
Commenting on the findings, Andrew Martin, CEO of DynaRisk, said: “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.”
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.
The report serves as a
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Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.