One of our latest investment hails from the home of the Hoosiers - right out of Bloomington Indiana the team and the concept of secondsight.ai was born! I know what you are thinking - great they added AI - which must make it automatically investable. For us at Render Capital, it was more than just adding the moniker of AI to the SecondSight team. At SecondSight’s core they are making one of the most complex insurance industries more readily understandable and specifically offering a suite of software tools that help businesses uncover, understand, and manage digital risk more effectively. Cyber insurance is one of the newest and overlooked places where businesses should maintain vigilance, compliance, and process.
SecondSight is the first telematics platform for real digital risk, empowering businesses to see and track inside-out risk in real time. SecondSight's platform is used by businesses of all sizes, including Fortune 500 companies, startups, and government agencies. All these customers benefit from a number of advantages, including:
- Reduced cyber risk: SecondSight's platform helps businesses to identify and mitigate digital risks before they become costly incidents.
- Improved cyber insurance coverage: SecondSight's platform provides businesses with the information they need to obtain adequate cyber insurance coverage at a competitive price.
- Peace of mind: SecondSight's platform gives businesses the confidence that they are prepared to respond to cyber incidents effectively.
Ransomware attacks occur every 11 seconds, while estimates suggest cybercrimes can cost businesses globally $10.5 trillion by 2025. This problem is not going away because the reward of a successful attack is profitable and the tools required to launch an attack are getting cheaper and more sophisticated. However, the process of underwriting cyber insurance, which is the process by which an insurance company evaluates the risks associated with insuring a particular person, property, or event, and determines the terms and conditions of the insurance policy, has not been successfully modernized because it is inconsistent and rarely takes a data driven approach.
Current methods typically rely on outside-in assessment that identifies potential policy holder network vulnerabilities but ignores vulnerabilities that reside inside the company (files, encryption settings, administrative access, databases, etc.). The process is often based on perceived promises or policies by companies which are hardly checked or verified by insurance providers and underwriters and instead is written based on these “supposed” policies that are scripted yet unvalidated.
This is a huge problem for insurance companies. Essentially, they’re pricing risks with very little internal insight into the way companies manage their digital infrastructure. Because demand is increasing and insights are low into the real exposure, premiums are continuing to increase dramatically. These price increases will continue to put a strain on corporate budgets. Eventually companies will need a better way to assess their risks so insurance companies can properly price and manage insurance premiums.
So you might ask - why now and why did Render decide to invest in the SecondSight team….
There are several macro trends in cybersecurity that are shaping the industry and driving growth in the market. Some of the key trends include:
- Increase in cyber threats: One of the most significant trends in cybersecurity is the rise in the number and complexity of cyber threats. Cybercriminals are increasingly using advanced tactics such as ransomware, phishing, and social engineering to steal sensitive data and disrupt businesses. This has led to a growing demand for advanced cybersecurity solutions that can effectively protect against these threats.
- Cloud adoption: The adoption of cloud-based technologies is another key trend in cybersecurity. With more businesses moving their operations to the cloud, there is a growing need for secure cloud infrastructure and cloud-based cybersecurity solutions. This trend has also led to an increased demand for cybersecurity professionals who have expertise in securing cloud-based environments.
- Internet of Things (IoT): The proliferation of IoT devices is another trend driving growth in the cybersecurity market. As more devices become connected to the internet, there is a growing need for security solutions that can protect against IoT-related threats. This trend has also led to an increased focus on securing critical infrastructure, such as smart cities, which are increasingly reliant on IoT devices.
- Regulations and compliance: With the increasing threat of cyber attacks, governments and regulatory bodies are introducing stricter regulations and compliance requirements for businesses. This has led to a growing demand for cybersecurity solutions that can help businesses comply with these regulations and protect their data from cyber threats.
- Finally and likely most important and pertinent to the Second Sight Platform… Artificial intelligence and machine learning: Artificial intelligence (AI) and machine learning (ML) are also important trends in cybersecurity. These technologies are increasingly being used to automate cybersecurity processes and improve the detection and response to cyber threats. AI and ML can also be used to improve the accuracy of threat intelligence and enable predictive analytics to help businesses proactively mitigate cyber risks.
SecondSight has several key benefits for use:
- Improved visibility into digital assets and risks: SecondSight's platform provides businesses with a comprehensive view of their digital assets and the risks associated with them. This information can be used to identify and mitigate risks before they become costly incidents.
- More informed cyber insurance decisions: SecondSight's platform provides businesses with the information they need to obtain adequate cyber insurance coverage at a competitive price. Businesses can use SecondSight's platform to compare quotes from different insurance providers and to choose the policy that best meets their needs.
- Reduced cyber risk exposure: SecondSight's platform can help businesses to reduce their cyber risk exposure by providing them with insights into their digital assets and risks. Businesses can use this information to implement risk mitigation strategies, such as security awareness training and multi-factor authentication.
- Improved compliance: SecondSight's platform can help businesses to comply with industry regulations that require them to assess and manage their cyber risks. SecondSight's platform can generate reports that document a business's cyber risk management program.
Overall, SecondSight is a leading provider of AI-powered cyber insurance solutions that can help businesses to improve their cybersecurity posture, reduce their cyber risk exposure, and make more informed cyber insurance decisions.
The market size of cybersecurity is a rapidly growing and dynamic field, with various estimates depending on the specific segment or region. According to a report by MarketsandMarkets, the global cybersecurity market size is expected to grow from $217.6 billion in 2020 to USD $345.4 billion by 2025, at a compound annual growth rate (CAGR) of 9.7% during the forecast period. The overall cyber market is growing dramatically which is a testament to the need in the market place more broadly.
In addition to the overall growth of the cyber security market, the growth in the global cyber insurance market is expected to grow from $10.33B in 2021 to over $63B in 2029 with a CAGR of 22.4% (link). These two macro trends / tailwinds in this market are extremely positive and will continue to drive needs for the Company’s products.
Finally, the SecondSight team is made up of rock stars. Reuben Vandeventer has deep experience in data science and has multiple startup companies experience. We have heard nothing but good things about his ability to take customer needs to deliver a product. He has surrounded himself with a deep bench and experts in various fields.
For all these reasons and many more - you should check out SecondSight for your business and ensure you are set up for the cyber security threats of tomorrow TODAY! Check out more at https://www.secondsight.ai/