WillItSurvive
Accounting, tax and business software · United States

Hyperproof

hyperproof.io ↗

Hyperproof sells compliance and risk management software for audit-heavy enterprises.

Losing its protection
Assessed 22 July 2026 · Evidence as of 22 July 2026
The structural protection is eroding.
On the recordSince 22 July 2026 · Checkable from Q3 2026 · Every call on the record Checkpoint: Revenue traction check on AI-native TPRM product built from Expent.ai acquisition
The call

Hyperproof keeps real enterprise customers but hasn't raised in three years while Vanta and Drata, sitting on far more capital, push AI features into its exact market.

Hyperproof helps large companies manage and prove they follow rules and security standards. It has real customers and is recognized by industry experts, but Vanta and Drata are much larger competitors with way more money, moving into the exact same space. The company stopped raising money over two years ago and cut staff by 20% in late 2025, signaling it is focused on survival rather than growth. Watch whether Hyperproof can land wins with its new artificial intelligence tool for managing vendor safety (built from its acquisition of Expent.ai) or whether it needs to raise money or get bought by someone else within the next year.

Why
01
AI pressure: Vanta AI and Drata AI copilots automating evidence collection. Rivals now use AI to auto-fill audit evidence, the manual work Hyperproof's platform was built to organize. Could AI do the core job? Only partly.
02
Bigger players: ServiceNow GRC/IRM module expansion. ServiceNow can bundle GRC into IT platforms enterprises already pay for, undercutting standalone tools like Hyperproof on price. Could a giant copy it? Yes, easily.
03
What protects it. Workflow lock-in with named enterprise accounts (Reddit, Fortinet, Thales, Appian) that would need to redo audit evidence chains to switch.
What would change this call
Hyperproof announces a new priced funding round or acquisition within 12 months. Would show investors still back its financial viability after the funding gap.
Hyperproof reports another layoff or headcount falls below 130. Would confirm continued financial contraction rather than stabilization.
Reddit, Fortinet, or Thales publicly switch to Vanta or Drata. Would show named enterprise customers defecting to better-funded rivals.
Key numbers
  • ~$21.2M estimated ARR (2026-06-28)
  • 20% staff layoff (Dec 2025)
  • $40M raised, none since Aug 2023 (2023-08-30)
Named risks
  • No priced funding round since August 2023, a 34-month funding gap as of mid-2026. Severity: high
  • Approximately 20% workforce reduction in December 2025 signals cost-defense mode. Severity: high
  • Sub-scale relative to Vanta and Drata, each with roughly 10x the capital and faster growth. Severity: medium
  • New AI-native TPRM product line (built on Expent.ai) unproven in disclosed revenue as of mid-2026. Severity: medium
Rivals, as read in July 2026
RivalDirectionEvidence
Vantagaining onRaised $150M at $4.15B valuation, up 69% YoY, Jul 2025, vs Hyperproof's flat funding since 2023
Dratagaining onReached $2B valuation Dec 2022 and continues expanding via acquisitions into enterprise GRC
ServiceNowcontestingExpanding GRC/IRM modules into Hyperproof's compliance-operations niche as a platform incumbent
MetricStreamcontestingSlow-moving but unblocked enterprise GRC incumbent competing for large accounts
Questions people ask
Is Hyperproof profitable in 2026?
Hyperproof discloses no audited financials. It has not raised a priced round since its $40M growth round in August 2023, and it cut roughly 20% of staff in December 2025, both signs of cost discipline rather than confirmed profitability.
Did Hyperproof have layoffs?
Yes. Hyperproof cut about 20% of its workforce in December 2025, and headcount tracking showed only 3 open roles as of June 2026, mostly engineering, indicating a hiring freeze after the cuts.
Who is Hyperproof's biggest competitor?
Vanta is Hyperproof's biggest rival: Vanta raised a $150M Series D at a $4.15 billion valuation in July 2025, up 69% from $2.45 billion a year earlier, dwarfing Hyperproof's last disclosed $40M raise in August 2023.
Could AI replace Hyperproof?
AI is more likely to be embedded into Hyperproof's product than replace it: the company launched 'Hyperproof AI' in September 2025 and 'AI Guided Experiences' in March 2026 to automate evidence collection and vendor-risk workflows, following the October 2025 Expent.ai acquisition.
Who owns Hyperproof?
Hyperproof is a private, venture-backed company founded in 2018 by CEO Craig Unger, previously founder of Azuqua (acquired by Okta in 2019). Investors include Toba Capital and Riverwood Capital, which led its $40M round in August 2023.
Has Hyperproof raised new funding recently?
No. Hyperproof's most recent disclosed round was a $40M growth round led by Riverwood Capital and Toba Capital in August 2023, bringing total raised to $66.5M; no priced round has been reported since, as of July 2026.
Timeline
  • 2026-06-25Chartis Research names Hyperproof Category Leader in Enterprise GRC, TPRM, IT Risk quadrants
  • 2026-04-28Launches AI-native TPRM product line; names Reddit among enterprise customers
  • 2026-03-24Launches AI Guided Experiences at RSA Conference 2026
  • 2025-12-03Cuts approximately 20% of workforce
  • 2025-10-07Acquires Expent.ai to build AI-native vendor/third-party risk capability
  • 2025-09-22Launches Hyperproof AI, an end-to-end AI GRC engine
  • 2023-08-30Raises $40M growth round led by Riverwood Capital and Toba Capital, total to $66.5M
  • 2021-10-20Raises $16.5M Series A led by Toba Capital at $72.5M post-money valuation
  • 2018-10Founded by Craig Unger with a $3M angel round
Revision history
22 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
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