Hyperproof, a leading software-as-a-service company specializing in risk and compliance management, announced today that it has successfully raised $40 million in a recent funding round. This achievement was made possible through the support of Riverwood Capital and Toba Capital, with Riverwood Capital leading the investment. The funding round has not only propelled Hyperproof’s valuation to new heights but has also brought its total raised funds to an impressive $66.5 million.
Embracing Opportunities in a Rapidly Evolving Regulatory Landscape
In light of the economic slowdown observed across various industries, the compliance sector has demonstrated remarkable resilience. This is attributed to the rapid pace at which regulatory agencies are passing new laws and implementing compliance regimes. As a result, the compliance industry continues to attract significant investment and drive important innovation.
With the recent introduction of several data privacy regulations, there has been a growing interest in compliance-as-a-service among corporate entities. In 2023 alone, approximately 140 consumer privacy bills were introduced or considered by 25 U.S. states and Puerto Rico. Furthermore, the implementation of the EU’s Cybersecurity Act and the U.S. Securities and Exchange Commission’s release of new regulatory disclosure rules have added to the urgency of compliance adoption.
While many enterprises are committed to building a culture of compliance, they often encounter challenges along the way. According to a Deloitte survey, 61% of internal compliance teams admit that recent increases in regulatory change have hampered their ability to perform effectively. These obstacles underscore the need for solutions that simplify and accelerate compliance efforts.
The Birth of Hyperproof: A Solution for Simplified Compliance
Craig Unger, co-founder and CEO of Hyperproof, drew inspiration from his own experiences with disruptive audits that frequently impeded product development. Unger, who previously worked for Microsoft and co-founded Azuqua, noticed that both companies, despite their differences in size, faced similar error-prone compliance processes. This led him to ponder the possibility of making compliance efforts simpler and faster.
In 2018, Unger launched Hyperproof, a comprehensive system that combines a collaboration and work management platform with a system of record for compliance data. This innovative solution automates non-strategic compliance tasks and supports an extensive range of compliance and governance frameworks. Hyperproof’s platform currently encompasses around 85 frameworks, including FedRAMP, the federal government-wide compliance program for cloud-based products and services.
To enhance efficiency, Hyperproof offers several software modules tailored to different aspects of risk and compliance management. These modules include risk management, compliance operations, audit management, and vendor risk management, providing enterprises with centralized risk monitoring, automated evidence collection, audit preparation visibility, and vendor risk assessment.
Furthermore, Hyperproof integrates seamlessly with popular platforms like AWS, Google Cloud, GitHub, and Cloudflare, as well as task management apps such as Jira, Asana, and ServiceNow. Leveraging the power of heuristics and artificial intelligence, Hyperproof’s algorithms prevent duplicative work and establish connections between user data and compliance requirements, ultimately saving time and resources.
A Growing Market and Hyperproof’s Success
While Hyperproof faces competition from other players in the compliance solutions market, its growth remains impressive. The segment is projected to be worth $3.06 billion by 2027, with a 15.7% compound annual growth rate from 2020, according to analysts at Allied Market Research.
Hyperproof has realized significant growth, with a customer base that has expanded by 130% in the past year. This growth has fueled a staggering 260% increase in revenue year-over-year. Some prominent companies, including Motorola, Nutanix, and 3M, rely on Hyperproof to optimize their risk and compliance workflows and mitigate potential risks.
Key Takeaway
Hyperproof, a leading risk and compliance management software-as-a-service company, has raised $40 million in a recent funding round, led by Riverwood Capital. The funds will be used to further develop Hyperproof’s platform and expand its team. In a rapidly evolving regulatory landscape, Hyperproof’s innovative solutions offer a simpler and faster approach to compliance, enabling organizations to navigate complex regulatory frameworks more effectively.
The success of this funding round will allow Hyperproof to enhance its platform and enable its 100-person team to focus on product development, customer success, marketing, and engineering. The company also plans to expand its go-to-market activities into new sectors and geographies and strengthen its partnerships.
As compliance requirements continue to evolve, organizations are increasingly recognizing the importance of proactive compliance management. Hyperproof’s solution addresses the challenges faced by enterprises in their compliance journeys, offering them real-time visibility, scalability, and collaboration. With its commitment to innovation, Hyperproof is well-positioned to further cement its presence in the compliance and risk management market.
