“Our vision is a world where risk is automatically identified and rapidly assessed in context of a customer’s business objectives and can be communicated in a way that everyone can understand. With our ROAR platform, companies can easily see, understand, and take action on their IT and cyber risks to quickly identify what is driving cyber risk for the business” – Michael Maggio, CEO & CPO of Reciprocity
“Michael and the team have done an exceptional job building Reciprocity’s approach to risk management, specifically with its ROAR Platform. As Reciprocity enters its next phase of growth, we are excited to partner with the team and help scale the business and expand into new markets to serve the needs of CISOs and business leaders” – Peter Gingold, Managing Director at Francisco Partners
Transaction Overview
- Reciprocity, a leader in information security, risk, and compliance, announced it has raised a $60 million growth investment from Francisco Partners, a leading global investment firm that specializes in partnering with technology businesses
- Reciprocity is pioneering a first-of-its-kind approach to IT risk management that ties an organization's risk directly to its business strategy through its Risk Observation, Assessment, and Remediation (ROAR™) Platform
- The fully integrated and automated Reciprocity ROAR™ Platform empowers security executives to communicate the direct impact of risk on high-priority business initiatives to key stakeholders, helping them make smarter, more informed decisions
- Following the strong reception and market validation of Reciprocity's pioneering approach to cyber risk management, the ROAR™ Platform has become an essential technology solution for businesses by tying an organization's risk directly to its business strategy
- The investment was structured as a $60 million senior secured term loan facility to be used for working capital and general corporate purposes
- Francisco Partners has invested in over 400 technology companies since its launch over 20 years ago, making it one of the most active and longstanding investors in the technology industry with approximately $45 billion in capital raised
Transaction Significance
- Organizations typically function in silos since departments or business units house their own data, technology, processes, stakeholders, and its own compliance requirements to meet thus rendering risk and compliance processes ineffective
- The current paradigm in risk & compliance is a vicious cycle of leveraging manual processes and disparate tools to meet insights that further drives a wedge in efficiency and failure for companies to meet compliance mandates
- The new capital will be used to support the Company's powerful new approach to risk management with accelerated product innovation and expansion of go-to-market activities
- The ROAR™ Platform provides organizations with a game-changing level of actionable risk insight – at both the business process level and at the executive corporate level – to make risk more manageable
- The Platform delivers rich, expert-provided guidance that enables companies to protect their most valuable assets, quantify the value of security investments, accelerate business initiatives, and effectively inform leadership on the levels of risk and improvements
- With Reciprocity, InfoSec teams can strategically support their organization and foster company growth by optimizing resources and mitigating expensive data breaches, system failures, lost opportunities and vulnerabilities with their customers' data
Momentum Cyber's Role
- Momentum Cyber served as exclusive financial & strategic advisor to Reciprocity
- This transaction demonstrates Momentum Cyber's deep domain expertise in cybersecurity M&A and risk & compliance technology markets, along with its proven track record advising leading technology companies on strategic growth financings
If you’re navigating a critical inflection point in cybersecurity growth, M&A, or capital strategy, Momentum Cyber brings unmatched sector expertise and senior-level advisory to every engagement. Let us advise you today and help you maximize value with confidence in an increasingly complex cyber landscape.