Cybersecurity training platform Hoxhunt, Finland’s fastest-growing SaaS company according to Deloitte, today announced it raised $40 million in its Series B round led by New York-based Level Equity Management, along with participation by existing investor Icebreaker.vc. The new funding will aid the development of Hoxhunt’s leading-edge technology and accelerate growth in new markets, particularly North America.
Hoxhunt makes good email cybersecurity a habit. Hoxhunt’s gamified platform rewards employees for reporting simulated and real email threats, using machine learning to create millions of individualized phishing simulations. Hoxhunt lightens the load for security teams who, aided by an elite customer success team, can upskill whole organizations with unprecedented engagement rates at the push of a button.
Cybercrime represents an ever-worsening pandemic costing global businesses trillions of dollars per year. Email is the main vector of transmission as 90% of all breaches, from ransomware to Business Email Compromise, are initiated by a phishing email. Hoxhunt is turning the tide on phishing attacks with breakthrough innovation. Their unprecedented results are supported by hard data and glowing testimonials from partners like Microsoft and Deloitte, and customers such as DocuSign, G2 and a number of governmental agencies.
“Email is the biggest threat to enterprise security; that’s why human nature is the most important cybersecurity challenge to solve, instead of building incrementally better mousetraps at the technical perimeter,” says Hoxhunt CEO Mika Aalto. “Our first-to-market platform enables measurable behavior change and cultural transformation. Our fundamentally different approach combines personalized and hyper-realistic training, adapted to each individual’s skill, role, location, and language.”
The cybersecurity market has seen explosive growth over the past two years. Cybersecurity spending is projected to grow from $262.4 billion in 2022 to $458.9 billion in 2025, with tightening regulatory and insurance pressure driving higher expenditure on awareness. Cybercrime costs are projected to swell to $10.5 trillion annually by 2025.
“There is tremendous growth potential in the cybersecurity awareness category, which we at Level Equity Partners are thrilled to invest in again with Hoxhunt, who we see as best-in-class in terms of innovation, product design, and leadership,” said Sarah Sommer, co-Founder and Partner at Level Equity Management. “In just two years, the number of cybersecurity unicorn companies has jumped from 6 to over 50, but too few are security awareness vendors. Next-level security training represents a huge opportunity in terms of ROI and, more importantly, doing good for the world.”