Compliance Startups Scoring Seed Money

The number of companies that require their software vendors to pass security management audits is increasing, spurring an increase in startup companies that aim to make the process easier. Strike Graph, which helps automate security audits, announced a $3.9 million round a few weeks ago, and on Oct. 21, Secureframe announced a $4.5 million round.  Secureframe’s co-founder and CEO, spent time at a direct mail service that faced customer demands for extensive security questionnaires and reviews, so he saw first hand the demand for the services his company will provide. The company’s strategy is to make the certification process more transparent and streamlined by automating the most labor-intensive tasks involved in getting ready for an audit. The pre-audit phase is usually the most costly, and the goal is to bring costs down to the point where more companies can afford it. In time Secureframe will add payment card industry (PCI), health information and HIPAA certifications to its services.