New York City-based SecurityScorecard is speeding up the vendor security review process with the acquisition of Toronto-based risk management platform HyperComply.
“By bringing HyperComply into SecurityScorecard, we can eliminate a barrier to efficiency.”
The entire HyperComply team joined SecurityScorecard after the deal closed earlier this month, including co-founders Amar Chahal and Cody Wright (formerly of Vidyard), Chahal told BetaKit in an email. Chahal and Wright are now SecurityScorecard’s general manager and CTO of assessments, respectively. Chahal declined to disclose the purchase price.
SecurityScorecard helps more than 3,000 organizations, including two-thirds of the Fortune 500, manage risks in their supply chain, such as monitoring for reported vendor data breaches. The company claims that customers “consistently” complain about having to fill out lengthy and repetitive security questionnaires for every single vendor. These reviews each require detailed responses on compliance frameworks, security controls, and risk-management practices, according to the company’s blog post.
HyperComply automates this process by answering questions based on a company’s existing compliance documentation and storing new answers in its knowledge base for human approval. Chahal told BetaKit in a 2022 interview that he and Wright were inspired to start HyperComply after navigating security reviews while trying to close customers as part of Vidyard’s engineering team.
RELATED: Led by ex-Vidyard employees, HyperComply wants to get rid of security questionnaires
“Security and compliance teams spend hours responding to vendor questionnaires, often at the expense of innovation,” SecurityScorecard CEO Aleksandr Yampolskiy said in a statement. “By bringing HyperComply into SecurityScorecard, we can eliminate a barrier to efficiency for suppliers while accelerating trust across the entire supply chain.”
HyperComply last raised a seed round in early 2022 from a list of prominent early-stage Canadian venture capital firms that includes Golden Ventures, Garage Capital, and Panache Ventures, bringing its total external funding to $10 million USD.
Chahal said in a statement that the acquisition is a “major leap forward” for HyperComply customers, who can expect to see HyperComply and SecurityScorecard’s offerings integrate in late 2025. SecurityScorecard said there aren’t any plans to remove or change features that customers rely on in order to ensure a smooth integration.
Feature image courtesy HyperComply.