In an alarming revelation, DynaRisk, a leading cybersecurity software firm, disclosed significant cybersecurity vulnerabilities in numerous companies backed by London’s top venture capital funds. Their latest study raises eyebrows, particularly among tech enthusiasts and investors, shedding light on the deep-seated need for rigorous cyber risk monitoring during venture investments.
The comprehensive report covered 5,482 companies affiliated with prominent VC portfolios. Tech enthusiasts might find it staggering that each of these companies, without exception, displayed cybersecurity shortcomings. A massive 65% (or 3,565 firms) manifested ‘High’ risk signals, and 8.6% (equivalent to 470 firms) showed ‘Critical’ risk alerts. These risks aren’t abstract; they include tangible threats such as data breaches, out-of-date software vulnerabilities, and chatter from hackers on the dark web, common precursors to cyberattacks.
Highlighting the tangible effects of cyber vulnerabilities, the study references a fintech firm that had been flagged by DynaRisk in November 2020 for a critical system flaw. Merely months later, in May 2021, after announcing a £5.5 million fundraising in February, this company became a ransomware victim.
Andrew Martin, DynaRisk’s CEO, emphasised the missed opportunity, stating, “If the fund had monitored cyber risks either during due diligence or post-acquisition, this costly hack could have been averted. They had 139 days to detect and rectify the problem.”
This revelation underscores a broader call to action in the tech community. As cyber threats become more sophisticated, the imperative for robust cyber risk monitoring systems becomes undeniable. To this end, DynaRisk’s suite, which includes tools like Breach Check and Cyber Xpert, is an attempt to simplify cybersecurity while buttressing it with top-tier threat intelligence.
Currently assisting over 20 clients, spanning consumers in the hundreds of thousands and numerous global businesses, DynaRisk is emerging as a beacon for accessible and straightforward cybersecurity solutions.
Notably, the exhaustive research by DynaRisk scrutinized portfolio companies from VC giants like Albion Capital, Index Ventures, Octopus Ventures, and many others.
With cyberattacks becoming an increasingly pressing concern in the tech arena, this revelation by DynaRisk is a wake-up call, urging the need for companies and their backers to fortify their digital defenses.
