⚖️ CyberCube and EvenUp - large funding rounds in Cyber Security Insurance and Legal AI - Asymmetrix Newsletter #86
The Data & Analytics market is hot in high-growth areas like Cyber Security and Legal AI
In this week’s newsletter we share our thoughts on two recent Data & Analytics funding rounds, representative of the high multiples achieved by disruptive Data & Analytics businesses, selected from the insights published on our subscription platform:
EvenUp raises $150m in Series E funding at $2bn+ valuation;
CyberCube receives $180m growth investment from Spectrum Equity.
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⚖️ EvenUp raises $150m in Series E funding at $2bn+ valuation
The legal AI space is seeing a goldrush of investment.
In the last two weeks we have witnessed:
Legora in talks to raise $100m at a $1.7bn valuation;
Harvey extended its Series E round to add $50m from EQT to the $300m it had already raised from investors led by Kleiner Perkins and Coatue;
Eve raised $103m in Series B funding;
Lexroom closed EUR16m in Series A funding;
Wexler.ai raised $5.3m in seed funding.
EvenUp’s raise adds even more fuel to the fire. The latest round sees their valuation more than double since their previous round in May, just six months ago, when they raised $80m at a $675m valuation.
The latest round was led by Bessemer Venture Partners, with participation from REV - the venture capital arm of RELX, which owns LexisNexis Legal & Professional – plus B Capital, SignalFire, Adams Street, Premji Invest, Bain Capital, HarbourVest, Lightspeed, and Broadlight Capital.
Focused on helping Personal Injury law firms to optimise their chances of winning cases, EvenUp’s AI Piai “is built on hundreds of thousands of injury cases and millions of medical records”.
As with most AI-led Data & Analytics businesses, EvenUp is a hybrid of Software and Data & Analytics.
Valuations for these businesses are through the roof – revenue multiples are as high as 50x (albeit not pure cash deals).
Subscribers to our data product can see our views here on EvenUp’s revenue and valuation.
As Asymmetrix has written many times before (in this previous Substack article, for example), Legal Data & Analytics is at the forefront of the transformation to AI and is thus a leading indicator for the direction of travel of the rest of the industry.
The lesson for Data & Analytics businesses is clear: transition to collect, transform and deliver your data using AI, or risk losing your position in the market.
🔒 CyberCube receives $180m growth investment from Spectrum Equity
CyberCube announced that it raised $180m from Spectrum Equity; the company has raised $280m from investors since its founding in 2015. The funding will accelerate development of the company’s risk modelling products and go-to-market expansion in insurance, reinsurance and brokering industries globally.
The company provides critical risk analytics to 130+ clients – including 75% of the top 40 European and US cyber insurers – in the cyber insurance value chain.
CyberCube assesses the financial impact of cyber events and portfolio-level cyber exposure; it also provides cyber catastrophe modelling based on external scan data and exposure databases.
Clients rely on CyberCube’s cyber risk assessments to underwrite insurance policies and analyze risk distribution across their portfolios. CyberCube also supports cyber risk transactions outside the insurance industry, including cyber catastrophe bonds.
The company integrates various sources of data into its cyber risk analytics models, including:
External Scan Data: vulnerability assessments and scans of internet-facing company infrastructure, such us web servers, public IP addresses, websites, and APIs, etc.
Proprietary Exposure Databases: CyberCube’s Industry Exposure Databases provide detailed cyber-exposure data on insurable companies and their exposures
Product and Client Data: client data from real-life cyber exposure incidents, including technology dependency and enterprise intelligence
As discussed in previous articles for our subscription clients on Unit 221B and SecurityScorecard, Asymmetrix sees Cyber Security Data & Analytics as a growing, if not nascent sub-sector.
Specifically, there is a new breed of businesses providing data solutions focused more on the business of cybersecurity than cybersecurity monitoring or remediation, including SecurityScorecard and IANS Research, among others.
Though many Data & Analytics investors are not at home investing in traditional cybersecurity providers, including threat intelligence solutions and the like, we view investment in companies like CyberCube as an attractive target that provides exposure to broader cybersecurity industry tailwinds with the attractive characteristics of traditional data businesses.
Subscribers to our data product can see our views here on CyberCube’s revenue and valuation.
And for our way-too-early take on exit opportunities for CyberCube, we can see the wisdom in a potential merger between CyberCube and SecurityScorecard.
While CyberCube’s cyber risk models and SecurityScorecard’s cybersecurity ratings are used by different end users – insurers and enterprise cybersecurity teams, respectively – the solutions are complementary. The opportunity to create a comprehensive cyber risk management platform is an attractive proposition to any private equity sponsor or strategic acquirer focused on the risk and compliance sector.
If you would like to have access to Asymmetrix’s underlying data via our subscription product, contact us directly at asymmetrix@asymmetrixintelligence.com