Nokia helped raise $27.5 billion for SecurityScorecard
Through its venture capital arm Nokia Growth Partners (or NGP), Nokia (NOK) recently led a Series C funding round. This funding round raised $27.5 million for US-based (SPY) cybersecurity rating and risk-monitoring provider SecurityScorecard.
Nokia was joined in the latest funding round for SecurityScorecard by the venture capital arms of Alphabet (GOOGL) and Intel (INTC). Following the investment, Nokia would have a representative on the board of SecurityScorecard.
Rating security vendors
Organizations use SecurityScorecard’s technology (QQQ) to monitor their cloud-based systems for potential vulnerabilities. This technology also allows users to evaluate their third-party security vendors to identify potential weaknesses in their products and services.
SecurityScorecard assesses security vendors and assigns them ratings in the range of A to F, where a score of F indicates that a security vendor is likely to be breached. With the ratings that SecurityScorecard provides, organizations can make informed decisions when selecting their security partners.
The cost of cyberattacks
According to financial services firm Lloyd’s, a malicious hack that takes down a cloud service provider could trigger $53 billion in global economic losses. Businesses in multiple industries are considering the growing threats of cyberattacks, the rising costs of dealing with data breaches, and the potential of losing critical data in the event of a hack. As a result, these businesses are increasing their cybersecurity spending, especially as they embrace cloud computing.
Research firm MarketsandMarkets forecast that the global cybersecurity market could expand to more than $231.9 billion by 2022, up from an estimated $137.9 billion in 2017. This trend presents a massive revenue and profit opportunity for SecurityScorecard and its backers like Nokia.