HackerOne has announced an investment of $25 million in Series B funding. The online security troubleshooter employs hackers to find the flaws in the security software of other companies’ products in order to rectify them.
The investment brings HackerOne’s total over two funding rounds to $34 million. Company CTO Alex Rice is confident that HackerOne is at the forefront of a boom in information security as companies recognise their users are vulnerable to exposure.
Rice said: “The world is opening up to the idea that traditional technology solutions have absolutely been falling us. Even large organizations with big security teams are feeling it. You can’t solve it in isolation.”
The software platform has also been very successful. To date, it has revealed almost 10,000 flaws and paid hackers $3 million to achieve this. HackerOne also has an impressive client list including Twitter, Slack, Adobe, Yahoo, and Airbnb.
The platform itself has interesting similarities with both social media and video games. Information about all parties – from the buying organisation to the hackers themselves – is stored and shared freely. Hackers can expect rewards from organisations for successfully finding flaws whilst also building a resume of their successes and skills base. Each of the individual agencies and hackers can achieve a rating, which could lead to additional offers of work.
The Series B funding round was led by NEA. Benchmark, which led during the Series A round, also participated, along with a series of prominent investors such as Digital Sky Technologies Partner Yuri Milner, Yelp CEO Jeremy Stoppelman, Dropbox CEO Drew Houston, Salesforce.com CEO Marc Benioff, Riot Games CEO Brandon Beck, Zenefits COO David Sacks, and Berggruen Holdings founder Nicolas Berggruen.
Rice admits that there is no single answer to ensuring information security in the digital age, but HackerOne’s success can come as some comfort. It is clearly a growing business that deserves a closer look.