ID Experts, a cyber breach and identity fraud protection company, raised $27.5 million in a round of equity funding and also spun off incident response management software business unit RADAR, as a new company, ID Experts said August 18 and 23, respectively.
Healthcare private equity firm Peloton Equity and cybersecurity venture capital firm Trident Capital Cybersecurity participated in the funding along with existing investors BlueCross BlueShield Venture Partners and Sandbox Advantage Fund.
ID Experts plans to use the funding to repurchase shares from select existing shareholders and to continue to innovate its Software-as-a-Service (SaaS) technologies to address cybersecurity and breach risks in the healthcare, retail, education, and government sectors.
Under the funding, Ted Lundberg and Justin Yang, partner and principal, respectively, of Peloton Equity as well as Sean Cunningham, managing director of Trident Capital Cybersecurity, will join the company’s board of directors.
“This investment validates the demand for technology and services that mitigates the risk of cyber breaches and resulting identity fraud. Our new group of investors is extremely well positioned to support ID Experts continued growth,” Bob Gregg, CEO of ID Experts, said in a statement.
“The healthcare industry is currently the most lucrative target for cyber attacks as evidenced by the recent proliferation of healthcare entity breaches and hospital focused ransomware attacks. We are excited to partner with ID Experts to help such organizations lower their cyber risks, handle an incident if it occurs, and mitigate the damages,” Lundberg added.
Separately, RADAR, Inc. was spun off from ID Experts as a separate company with $6.2 million in Series A funding. RADAR has operated as ID Experts’ incident response management software autonomous business unit since 2014 and grew strongly since then.
Over the past 12 months RADAR’s average contract value (ACV) and monthly recurring revenue (MRR) have more than doubled while the company also added 12 new Fortune 500 companies to the customer roster and doubled its staff, RADAR said.
RADAR is headquartered in Portland, Ore., and its CEO is product inventor Mahmood Sher-Jan. Members of the board of directors include chairman Kevin Padrick, Rick Miller, Allen Alley, and Sher-Jan.
Other management positions include Doug Kruger as senior vice president of sales and business development; Dylan Anderson as head of finance; and Alex Wall, CIPP/US, CIPP/E, as senior counsel and global privacy officer.
“RADAR is solving a significant compliance problem facing companies that suffer privacy and security incidents and struggle with determining whether those incidents are notifiable under complex state and federal breach laws,” Kevin Padrick, chairman of RADAR’s board, said in a statement
“This is an underserved market that is hungry for the innovation, guidance, and efficiency that RADAR provides. The company is well positioned to maximize the opportunities ahead,” he added.
Our new independence will expand our go-to-market opportunities and further fuel innovation in the RADAR platform, allowing us to accelerate the introduction of new features and enhancements so that we can continue to foster strong collaboration with our customers and to deliver exceptional value, support, and return on investment,” Sher-Jan added.