Panorays, an Israeli cybersecurity startup that deals with third-party security risk management, 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. 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.
Third party risk is the potential threat posed to any company or firm’s employee and customer data, financial information and operations that comes from the outside. So that is the “third party.” The client or end user would be a second party. They too can be a threat.
But think about all of those people who use a company’s online services and who may have some sort of virus or spyware on their own computers without even knowing it. Or who might be connecting trough an insecure connection, such as a public Wi-Fi.
Panorays offers an automated third-party security platform that manages the process from inherent to residual risk, remediation and ongoing monitoring. Unlike other solution providers, Panorays says that its solution combines automated, dynamic security questionnaires with external attack surface assessments and business context to provide organizations with a rapid, accurate view of supplier cyber risk. The company says that this is the only such platform that automates, accelerates and scales customers’ third-party security evaluation and management process, enabling easy collaboration and communication between companies and suppliers, resulting in efficient and effective risk remediation in alignment with a company’s security policies and risk appetite.
The company has seen a 500% increase in its customer base over the past year. So there is clearly a demand for its type of services.
“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.”
“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.”
The company was recently named a Strong Performer in The Forrester New Wave™: Cybersecurity Risk Ratings Platforms, Q1 2021 evaluation. The analyst report found that Panorays “differentiates with its complete questionnaire capabilities, accuracy and workflow. The risk context delivered by Panorays combines human factors, questionnaire management for third parties and a simple-to-use fourth-party discovery feature.”