Hyperproof Inc., a startup that helps companies comply with cybersecurity and privacy regulations, has raised $40 million in fresh funding.

Riverwood Capital led the round. Hyperproof said in its announcement of the investment today that existing backer Toba Capital contributed as well. Since launching in 2018, the company has raised a total of $62.3 million in funding.

“This round of funding will empower us to grow alongside our customers and continue offering them innovative new capabilities to meet their evolving enterprise needs,” Hyperproof founder and Chief Executive Officer Craig Unger wrote in a blog post. 

Enterprises that collect consumer information in the European Union must ensure that their data use complies with the bloc’s GDPR privacy law. Hospitals, meanwhile, must comply with the healthcare sector’s HIPAA cybersecurity regulation. There are also cybersecurity best practices such as the SOC 2 framework that companies aren’t always legally required to follow, but are often expected to by customers.

Bringing a company’s infrastructure into compliance with data management regulations can involve upwards of hundreds of steps. As a result, it’s difficult to check that every step has been completed correctly. Bellevue, Washington-based Hyperproof sells a cloud platform that can track a company’s compliance efforts in a centralized dashboard to ease monitoring.

Hyperproof’s platform visualizes key compliance data in graphs. It can, for example, display what percentage of a company’s privacy controls don’t yet comply with GDPR. The platform also provides related data points, such as whether there are controls that should be tested to verify their reliability.

Alongside high-level metrics, Hyperproof aggregates information about specific regulatory compliance issues in a company’s infrastructure. Compliance teams can use the platform to identify internal technology assets that don’t meet cybersecurity or privacy requirements. According to Hyperproof, its platform can also be used to evaluate the effectiveness of suppliers’ compliance efforts.

Many cybersecurity regulations require companies to implement specific settings in their internal applications. An enterprise might, for example, be required to ensure its file share folders are protected by passwords. Manually checking all of a company’s file share folders and other data assets for compliance can be prohibitively time-consuming in some cases.

To ease the task, Hyperproof provides connectors that automatically collect compliance data from a company’s applications. The platform can, for example, collect data on whether a Google Drive environment’s cybersecurity settings are configured correctly. The company says it can save hundreds of hours per year for compliance teams by reducing manual work.

Hyperproof claims the number of organizations using its platform has tripled since 2022. The company’s revenue grew 260% in the same time frame. The company’s installed base includes Nutanix Inc., Motorola Solutions Inc. and other major tech firms.

It will use the proceeds from its latest funding round to extend its platform’s feature set. As part of the initiative, the company plans to add artificial intelligence tools for automating manual regulatory compliance tasks. 

Image: Hyperproof