Israeli cybersecurity tech startup Panorays secures $42 million in Series B funding to revolutionize third-party security
Hardly a day goes by without another headline of cyber-attacks and data breaches. Companies around the world are losing billions of dollars to cybercriminals. Governments and customers are also holding these companies into account forcing them to tighten their security measures.
The increase in data privacy regulations, including European Union GDPR, and the growing risk of supply chain attacks are changing the way companies approach data privacy and third-party cybersecurity. To address these challenges, one cybersecurity startup makes its mission to help companies and vendors by providing security risk management software to automate, accelerate, and scale their third-party security process.
Enter Panorays, A Tel Aviv, Israel-based tech startup that provides a platform to help companies dramatically speed up their third-party security evaluation process and gain continuous visibility while ensuring compliance to regulations such as GDPR and NYDFS.
Today, Panorays announced it has closed a $42 million Series B funding round led by Greenfield Partners, with participation from existing investors Aleph and Oak HC/FT as well as new investors BlueRed Partners (Singapore), Greenspring Associates, and Moneta VC.
The fresh capital infusion will be used to support the company’s growth as the global standard in transforming third-party security risk management, and the fastest and easiest way for companies to do business together. Panorays intends to use the funds to expand in the U.S. and internationally, as well as innovate and develop additional advanced tools to streamline security between organizations and their vendors.
“In the wake of a tumultuous year in the industry, with numerous supply chain attacks including SolarWinds, Accellion, Kaseya, and Codecov, businesses are searching for a solution to manage third-party security risk,” said Matan Or-El, Co-Founder and CEO of Panorays. “Panorays’ innovative technology ensures that companies seamlessly work together with their vendors to minimize security risks.”
Founded in 2016 by Demi Ben-Ari, Matan Or-El, and Meir Antar, Panorays is a provider of third-party security risk management software, offered as a SaaS-based platform. The company serves enterprise and mid-market customers primarily in North America, the UK, and the EU, and has been adopted by leading banking, insurance, financial services, and healthcare organizations, among others. Since its inception five years ago, Panorays has raised a total of $62 million in funding over 3 rounds.
“Third-party security is quickly becoming a board-level issue, and the ability to credibly assess, continuously monitor and clearly report on an organization’s posture vis-à-vis its third parties in a context-aware manner will be table stakes in the near future,” said Avery Schwartz, Partner at Greenfield Partners. “Panorays delivers that and more to enterprises, while at the same time facilitating increased trust with vendors in order to reduce onboarding friction significantly.”
According to a recent Interos report, 77% of organizations have suffered at least one cyber breach within their supply chain over the past year, with an average of two per organization. In addition, a recent survey by Panorays found that one-third of organizations work with more than 500 suppliers, and 33% of respondents said that they believe that a third-party data breach is likely within the next year.
These facts have underscored the need for Panorays’ technology, evidenced by a 500% growth in its client base since its last funding round at the end of 2019.