DynaRisk, the intelligence-led cybersecurity software company, has released a report exposing the concerning cyber posture of the portfolio companies of leading venture capital (VC) funds with a presence in London.
The report aims to raise awareness among fund managers about the urgent need to incorporate cyber risk monitoring.
The statistics indicate that every VC fund has a number of companies in its portfolio that are highly susceptible to cyber attacks — every single one of 5,482 companies involved in the study had cybersecurity issues that could leave them exposed.
Some 65 per cent (3,565) exhibiting ‘high’ rated risk signals and 8.6 per cent (470) exhibiting ‘critical’ risk signals.
The report highlights the urgent need to incorporate cyber risk monitoring as an essential part of their due diligence and portfolio company monitoring processes.
One particularly notable case from DynaRisk's research involved a fintech portfolio company. In November 2020, DynaRisk observed a critical vulnerability in the company's system.
Subsequently, in February 2021, the company announced a £5.5 million fundraise led by a UK VC fund, and in May 2021, the portfolio company fell victim to a ransom attack.
Commenting on this case, Andrew Martin, CEO of DynaRisk, comments: "Had this fund been monitoring the company for cyber risks during the due diligence stage or after joining the company's board, the hack could have been prevented, and the risks to the business greatly reduced. The fund had a total of 139 days to identify the issue and help the portfolio company fix it."
DynaRisk supports more than 20 clients protecting hundreds of thousands of consumers and thousands of businesses globally.
