SecurityScorecard
Rates companies' cyber risk using external scans, sold to enterprises and insurers.
On the record
Checkpoint: Resolution of valuation gap via new funding round or IPO filing
The call
The scan data and insurance ties keep customers paying today, but a halved valuation and shrinking headcount show investors pricing in a smaller future.
SecurityScorecard rates the security of millions of organizations by scanning the internet and sells those ratings to insurance companies and enterprises worried about vendor risk. The company built something real: a huge database of scanned organizations and relationships with insurance underwriters that are hard to replicate. But BitSight does almost the same thing with similar resources, and larger software companies like ServiceNow and CrowdStrike are adding competing rating tools to their existing products, which could pull customers away. The one thing that could save SecurityScorecard's upside is if insurance companies lock in and standardize on its ratings for underwriting decisions, or if its internet-scanning data advantage grows so large that competitors cannot catch up.
Why
01
AI pressure: AI-native TPRM entrants (e.g. RiskXchange) and generic LLM questionnaire tools. LLMs can auto-fill vendor security questionnaires, squeezing the managed-services margin SecurityScorecard sells on top of its ratings. Could AI do the core job? Only partly.
02
Bigger players: ServiceNow, OneTrust, or CrowdStrike bundling a ratings/TPRM product. None has shipped a competing ratings product yet, but any of them bundling one into existing GRC or endpoint platforms would hit hard. Could a giant copy it? Yes, easily.
03
What protects it. Owns scan data on 12M+ organizations and sits inside cyber-insurance underwriting, both hard to replicate fast.
What would change this call
ServiceNow or OneTrust launches a standalone security-ratings product and announces customer wins from SecurityScorecard. Platform bundlers are converting the moat's questionnaire layer into a commodity feature.
SecurityScorecard raises a new funding round or discloses valuation within 12 months. Resolves whether the $1B to $0.4B secondary-market drop reflects a real down-round.
BitSight announces an IPO filing or acquisition at a premium valuation. Shows whether the peer is outpacing SecurityScorecard in investor confidence and market consolidation.
SecurityScorecard raises a new funding round or discloses valuation within 12 months. Resolves whether the $1B to $0.4B secondary-market drop reflects a real down-round.
BitSight announces an IPO filing or acquisition at a premium valuation. Shows whether the peer is outpacing SecurityScorecard in investor confidence and market consolidation.
Key numbers
- $130-140M ARR
- Valuation cut from $1B to ~$0.4B
- Headcount down 12.5% since 2023 peak
Named risks
- Valuation conflict between $1B 2021 round and $0.4B July 2026 secondary estimate unresolved.
- Platform incumbents like ServiceNow, OneTrust, or CrowdStrike could ship competing ratings/TPRM products.
- Headcount down 12.5% from 2023 peak and job postings down 64% YoY signal hiring slowdown.
- Equally-resourced peer BitSight contests same customer base with comparable scale.
- AI-native tools commoditizing questionnaire automation could erode margin-rich managed-services layer.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| BitSight | contesting | Duopoly rivals trading customer migrations; BitSight named Forrester Wave Leader with 3,500+ customers as of 2026-07 |
| ServiceNow | gaining on | Vendor Risk Management platform could bundle ratings/TPRM but no shipped competing product confirmed as of 2026 |
| OneTrust | gaining on | GRC incumbent expanding into TPRM space, structural threat noted through 2026 |
| CrowdStrike | contesting | Currently a MAX marketplace partner but holds platform capacity to bundle a rival ratings product |
| RiskXchange | gaining on | AI-native entrant positioning itself as disruptive alternative as of 2026-07-05 |
Questions people ask
- Is SecurityScorecard profitable in 2025?
- SecurityScorecard reported positive free cash flow and more than ten consecutive quarters of revenue growth as of October 15, 2025, alongside a self-reported 40% improvement in ARR per employee, per the company's own record-quarter announcement.
- Who is SecurityScorecard's biggest competitor?
- BitSight is SecurityScorecard's closest rival, a similarly-sized security ratings pioneer founded in 2011 with over 3,500 customers and a Forrester Wave Leader 2026 rating; the two firms actively trade customer migrations in the same market.
- Is SecurityScorecard laying people off?
- Headcount fell from a 2023 peak of 648 to about 567 employees by December 2025, a 12.5% decline, and active job postings dropped 64% in 2025 versus 2024, per Revelio Labs data as of June 29, 2026.
- Could AI replace SecurityScorecard's product?
- SecurityScorecard's own TITAN AI, launched March 23, 2026, automates the questionnaire validation and risk-tiering work that used to justify premium services, meaning AI-native rivals could commoditize that layer, though its proprietary internet-scanning dataset and insurance-industry distribution remain harder to replicate.
- What is SecurityScorecard worth in 2026?
- SecurityScorecard was valued at roughly $1 billion after a $180 million Series E led by Silver Lake Waterman in March 2021, but a secondary-market estimate as of July 2026 placed its valuation around $0.4 billion, a 56% markdown.
- Who owns SecurityScorecard?
- SecurityScorecard is a private, venture-backed company founded in 2013 by Dr. Aleksandr Yampolskiy, with roughly $292.2 million raised across about seven rounds; its largest known backer is Silver Lake Waterman from the 2021 Series E.
Timeline
- 2026-07Secondary-market estimate values SecurityScorecard at ~$0.4B, down 56% from 2021 round
- 2026-05-14Acquired UK scanning startup Driftnet; claims 40% more indexed hosts than rivals
- 2026-03-23Launched TITAN AI platform at RSA Conference
- 2026-02-11Reported 160% YoY partner ARR growth and 600+ global partners
- 2025-10-15Announced 10+ consecutive quarters of growth and positive free cash flow
- 2025-09Acquired HyperComply, a vendor questionnaire automation company
- 2025-08-12Named to Inc. 5000 fastest-growing private companies list for 2nd year
- 2021-03Closed $180M Series E led by Silver Lake Waterman at ~$1B valuation
- 2013Founded by Dr. Aleksandr Yampolskiy and co-founders in New York City
Revision history
21 July 2026
First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- How SecurityScorecard CEO Aleksandr Yampolskiy Scaled from Zero to $140 Million Revenue
- SecurityScorecard Achieves Record Quarter, Extending Market Leadership Through AI Innovation (2025-10-15)
- SecurityScorecard Reports Triple-Digit 2025 Partner Growth as MAX Ecosystem Expands Worldwide (2026-02-11)
- SecurityScorecard Number of Employees 2026 (2026-06-29)
- Ratings Firm SecurityScorecard Raises $180M To Grow Globally
- SecurityScorecard - Headcount, Funding & Open Jobs (2026-07-08)
- SecurityScorecard (2026-06-30)
- SecurityScorecard Unveils TITAN AI (2026-03-23)
- SecurityScorecard Acquires Driftnet (2026-05-14)
- SecurityScorecard Included on the 2025 Inc. 5000 List (2025-08-12)
- SecurityScorecard (2025-05-22)
- BitSight Alternatives for Mid-Market and Regulated Firms (2026) (2026-07-05)