BitSight, a startup that assesses the likelihood of an organization being violated, has received a $ 250 million investment from rating giant Moody’s and acquired Israeli cyber risk assessment startup VisibleRisk for an undisclosed sum.
Boston-based BitSight says the investment by Moody’s, which has long warned that cyber risk can hurt creditworthiness, will allow it to create a cybersecurity risk platform while the credit rating giant plans to keep cyber risk data and research from Leverage BitSight through its integrated risk assessment product offerings.
The investment valued BitSight at $ 2.4 billion, making Moody’s the company’s largest shareholder.
“Creating transparency and building trust is at the core of Moody’s mission,” said Rob Fauber, President and CEO of Moody’s, in a statement. “BitSight is a leader in cybersecurity assessments, and together we will help market participants from all disciplines better understand, measure and manage their cyber risks and translate this into the risk of cyber loss.”
The purchase of VisibleRisk by BitSight, a joint venture for cyber risk assessments founded by Moody’s and Team8, expands BitSight’s platform with comprehensive cyber risk assessment functions that enable the startup to better analyze and calculate a company’s financial risk from cyber risks . VisibleRisk, which has raised $ 25 million to date, says its so-called “cyber ratings” are based on quantifying cyber risk, which enables companies to compare their cyber risk with that of their competitors and the impact of Better understand cyber and manage threats to their businesses.
After the acquisition, BitSight will also create a Risk Solutions division that will focus on delivering a range of critical solutions and analytics to serve stakeholders such as chief risk officers, C-suite executives and board members. This department is led by VisibleRisk co-founder and CEO Derek Vadala, who previously led Moody’s Cyber Risk Group.
Steve Harvey, President and CEO of BitSight, said the company’s partnership with Moody’s and the acquisition of VisibleRisk will expand its reach to “help clients manage cyber risk in an increasingly digital world.”
BitSight was founded in 2011 and has a total of 155 million. The startup has almost 500 employees and more than 2,300 global customers, including government agencies, insurance companies and asset managers.