In the business world, little growth can be achieved without taking any risks. However, managing all the risks that come with running a company, from operations and finances to cybersecurity, is a separate matter entirely. For this reason, LogicGate developed a solution to help enterprises gain a thorough understanding of their risk posture, helping to ensure a good growth opportunity doesn’t slip through the cracks.
On Wednesday, LogicGate announced the close of a $113 million Series C funding round led by PSG, with participation from Greenspring Associates, that brings its total funding to $156 million. The company’s no-code platform is built to be flexible and easily configurable so that enterprise security professionals can develop applications that automate and operationalize every aspect of their company’s risk management processes, according to Matt Kunkel, LogicGate’s co-founder and CEO.
“Where we’re going and how we’re really differentiating ourselves in the market, from a risk and compliance and GRC platform perspective, is this concept of risk quantification and prioritization,” Kunkel told Built In. “A beautiful byproduct of our platform is we’ve aggregated all of these different risk, regulatory, compliance and security data points. [We] use data points to give strategic insights to ... CEO and board-level people about the risk posture in their organization so they can understand risk from a strategic perspective.”
Similarly to how companies rely on software like Salesforce for customer relationship management or Workday for human resources, LogicGate hopes to increase its presence in the governance, risk management and compliance (GRC) space, a market that is expected to grow 12.6 percent this year, according to the company. LogicGate already currently serves hundreds of customers such as SoFi, Zurich Insurance, Memorial Hermann Health and Cimpress.
Within its fast-growing market, LogicGate has experienced significant growth of its own. The company’s ARR increased over 80 percent from 2019 to 2020. Much of the company’s recent growth came as enterprises have turned more attention to matters like business continuity planning and operational resiliency during the pandemic, in addition to a global shift to cloud computing, according to Kunkel.
Next on the agenda for LogicGate is fueling the launch of a new product in the risk quantification and prioritization space in the coming months, Kunkel said. It’s also planning to build more applications for its Risk Cloud Exchange marketplace, as well as invest in its strategic alliances and channel partners. Some of LogicGate’s partners include Protiviti, Optiv and Avocode.
“We’re really excited for the community and the GRC ecosystem. I think it’s been a very underserved technology market for a very long time, and we believe that we’re the company to come in and really help our customers,” Kunkel said. “At the end of the day, that’s our mission: change the trajectory of [an] organization, make the lives of our customers better through flexible, easy-to-use GRC technology.”
Aside from product innovation, a large part of the company’s focus is on international growth, especially in the U.K. and E.U. As it continues working toward this goal, LogicGate is planning to double the size of its team over the next 18 months. The company currently employs 174 people and is planning hires across the board on teams like product, engineering, customer success and more, both remotely and based out of its Chicago headquarters.
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