The team behind the compliance automation tool is joining a platform used by two-thirds of Fortune 500 companies.
New York-based SecurityScorecard is accelerating the vendor security review process with the acquisition of Toronto-based risk management platform HyperComply.
“By adding HyperComply to SecurityScorecard, we can remove barriers 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 via email. Chahal and Wright are now General Manager of SecurityScorecard and CTO of Scores, 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 chains, such as tracking supplier data breaches. The company says customers “constantly” complain about having to fill out lengthy and repetitive security questionnaires for each individual supplier. Each of these audits requires detailed responses to compliance systems, security controls and risk management practices, company officials said. blog post.
HyperComply automates this process by answering questions based on the company's existing compliance documentation and storing new answers in its knowledge base for human approval. Chahal told BetaKit in a 2022 interview, he and Wright were inspired to create HyperComply after studying security audits and trying to close clients as part of Vidyard's engineering team.
CONNECTED: HyperComply, led by former Vidyard employees, wants to get rid of security questionnaires
“Security and compliance departments spend hours answering vendor questionnaires, often at the expense of innovation,” SecurityScorecard CEO Alexander Yampolsky said in a statement. “By adding HyperComply to the SecurityScorecard, we can remove barriers to efficiency for suppliers while increasing trust throughout the supply chain.”
HyperComply last raised the issue seed round in early 2022 from a list of prominent Canadian early-stage venture capital firms that includes Golden Ventures, Garage Capital and Panache Ventures, bringing the total external funding to US$10 million.
In a statement, Chahal said the acquisition is a “major step forward” for HyperComply customers, who can expect to integrate HyperComply and SecurityScorecard offerings by the end of 2025. SecurityScorecard said it has no plans to remove or change features customers rely on to ensure a smooth integration.
Image courtesy of HyperComply.
