CybSafe is a cyber security company that focuses on the human element of cybersecurity by providing training and education to individuals and organizations to better understand risks and how to mitigate them. This includes educating employees on recognizing and responding to phishing emails, avoiding common social engineering tactics, and developing better cybersecurity habits. By doing so, CybSafe aims to reduce the likelihood of human error leading to a security breach.
Similarly, KnowBe4 and SoSafe, which raised $400M and $73M respectively, also work in what is called "Behavioral Cybersecurity". However, CybSafe's competitive advantage lies in its intelligence, which leverages data and analytics to identify areas of weakness in an organization's security culture and then delivers customized training modules and simulations to address those specific areas. This approach goes beyond a generic HR course and provides a more personalized and effective way to address the unique security challenges of each organization.
Moreover, the company has partnered with several organizations to help analyze human behavior regarding cyber-attacks. For example, they have partnered with Warwick Business School to conduct research on human behavior and cybersecurity and with the University of Sussex to develop a behavioral science-based approach to cybersecurity education, creating a science-backed portfolio of services and products.
These partnerships provide CybSafe with access to valuable insights and expertise in areas such as psychology, behavioral economics, and human factors engineering. By combining this expertise with their own technical security know-how, CybSafe can develop cutting-edge cybersecurity solutions that address both the technical and human elements of cybersecurity. The result is a more comprehensive and effective approach to cybersecurity that helps organizations stay ahead of the ever-evolving threat landscape.
With promising business, CybSafe reached $40M in funding in 2022, backed by Hannover Digital Investments and Evolution Equity Partners. In addition to the cybersecurity insurance landscape, where SMEs struggle to pay higher premiums due to higher cost of claims from rising cyber-attacks (illustrated below in NTT DATA Insurtech Global Outlook), behavioral security-focused companies are less exposed to insurance variables. This advantage relieves the pressure that the insurance market is suffering from the high uncertainty environment, as mentioned in previous posts.
In fact, CybSafe can be seen as a provider for the insurance sector needs. This valuable player in the insurtech context due to its focus on cybersecurity awareness and education. CybSafe can help companies not only reduce the risk of cyber-attacks and data breaches but also reduce the potential for insurance claims related to cyber incidents and use of data and analytics that can provide valuable insights to insurers looking to assess and price cyber risk, improving risk assessment and management.
The strategic fit for insurance companies and the timing could not be better for CybSafe. Its business is in high demand and can complement many aspects of cybersecurity for clients. The company has reported significant revenue growth, with revenue increasing by 98% year-on-year in 2020. It has also been recognized with several awards for its innovative approach to cybersecurity training and awareness, including the Cybersecurity Excellence Award for Best Security Education Platform in 2020 and 2021.
Lastly, the company's founder and CEO, Oz Alashe, is a former UK Special Forces officer and has been recognized as one of the UK's top 100 black and minority ethnic leaders in technology. The team also includes several senior executives with extensive experience in the technology industry, as well as experts in cybersecurity education and psychology.
Hence, CybSafe appears to be well-positioned for success in the short-term future. With its focus on addressing the human element of cybersecurity and leveraging data and analytics to provide customized training, the company offers a unique and effective approach to combating cyber threats. As the insurance industry grapples with rising premiums due to the high cost of cyber claims, CybSafe's focus on cybersecurity awareness and education could prove to be a valuable asset. With a strong and experienced leadership team, the company is poised to continue its growth trajectory and make a significant impact on the cybersecurity market in the short-term future.