Following a substantial funding round where it secured $102 million, Bugcrowd has proceeded to expand its security capabilities by acquiring Informer, a company known for its expertise in attack surface management (ASM). Bugcrowd, which utilizes the combined efforts of over 500,000 white-hat hackers to uncover and resolve security vulnerabilities in various corporate networks and applications, views this acquisition as an opportunity to internalize a key component of security technology. ASM plays an essential role by continually scanning and identifying potential security risks in an organization’s IT landscape.
Although the financial terms of the acquisition have not been revealed, it is known that Informer has been a self-funded entity, turning profits. This marks Bugcrowd’s initial venture into acquisitions.
Located in the U.K., Informer’s client base mainly hails from the same region, with companies like Brandwatch and notably, the venture firm InMotion, a non-fundraising entity, amongst its clientele.
The acquisition results in Bugcrowd integrating Informer’s technology, customer base, and staff. Marios Kyriacou, the CEO and founder of Informer who started his career as a white-hat hacker, will now lead as Bugcrowd’s head of product. Bugcrowd anticipates this move will enhance the technology they regularly deploy as part of their offerings.
“We’ve been leveraging various partners for ASM technology up until this point and then also offering what we call ‘attack reconnaissance’, which is basically having the hackers leverage ASM to be able to then say, ‘Hey, this is how I would get in.’ This for us was an important piece of technology that we wanted to have on the platform. Because one of the things we keep hearing from customers is they still don’t understand their perimeter walls. Even in 2024,” CEO Dave Gerry explained.
As companies progressively transition to cloud services and embrace remote work, managing the attack surface has become more complex and critical. Nonetheless, many organizations lack a clear understanding of their active and inactive digital assets. This lack of visibility can lead to security gaps and vulnerabilities. Bugcrowd aims to bridge this gap by developing its own offerings in ASM rather than relying on external partners.
Backed by notable investors like General Catalyst, with a total of $180M raised to date, Bugcrowd’s valuation remains undisclosed. For context, its competitor HackerOne was estimated at $800M in 2022. As the investment market reevaluates the security sector, Bugcrowd positions itself as a potential consolidator.
“This deal,” Gerry said, “is happening as the start of what we hope is a rapid succession of opportunities for us.” He, along with founder/CTO Casey Ellis, notes frequent approaches by companies looking to be acquired in the face of market challenges.
FAQ Section
What is Bugcrowd?
Bugcrowd is a platform that leverages a community of over 500,000 white-hat hackers to uncover and fix security vulnerabilities in companies’ digital infrastructures.
What is Informer known for?
Informer specializes in attack surface management (ASM), which helps organizations monitor and assess potential security vulnerabilities in their IT environments.
Why did Bugcrowd acquire Informer?
Bugcrowd acquired Informer to internalize ASM technology and enhance its security product offerings. They aim to provide a comprehensive understanding of organizational perimeters to their customers.
What does the acquisition mean for Informer’s team?
Informer’s entire staff, including CEO Marios Kyriacou, will join Bugcrowd. Kyriacou will serve as the head of product at Bugcrowd.
How does Bugcrowd’s position in the market change with this acquisition?
With Informer’s technology in its portfolio, Bugcrowd aims to develop its own ASM products and solutions, enhancing its competitive stature and increasing its potential for market consolidation.
Conclusion
The strategic acquisition of Informer stands as an integral step for Bugcrowd in its quest to refine and expand its security services. By integrating Informer’s specialized ASM technology and skilled team, Bugcrowd responds to the evolving landscape of cybersecurity where constant vigilance and innovative solutions are paramount. Customers can look forward to enhanced offerings that promise deeper insights into the safety of their digital environments. As the cybersecurity domain faces financial recalibration, acquisitions such as this may signal Bugcrowd’s emergence as a key consolidator and thought leader in the security industry.
