Cybersecurity Training Reimagined: Living Security Secures $14 Million

Traditional cybersecurity training is often perceived as a necessary, yet unwelcome, obligation for employees. However, Living Security, an Austin-based company, is actively working to transform this perception.

A Shift Towards Human Risk Management

Living Security aims to make cybersecurity training an engaging experience, rather than a dreaded task. The company recently finalized a $14 million Series B funding round to facilitate its growth beyond basic awareness training and into the realm of comprehensive human risk management.

Updata Partners, based in Washington, D.C., spearheaded the financing. Participation also came from existing investors including Silverton Partners, Active Capital, Rain Capital, and SaaS Venture Partners. This investment follows a $5 million Series A round led by Austin’s Silverton Partners, which was secured last April.

Founding and Early Development

Founded in June 2017 by Drew and Ashley Rose, Living Security originated as a home-based venture. Their core mission was to enhance the effectiveness of cybersecurity training through gamification, immersive storylines, role-based micro-modules, and detailed reporting.

The company initially gained traction with its Cyber Escape Room product. When the pandemic necessitated remote work, Living Security adapted by launching CyberEscape Online, bringing their immersive training experiences to a virtual environment.

Addressing the Remote Work Security Challenge

The increasing prevalence of remote work has heightened the need for solutions like those offered by Living Security. The use of personal devices for professional tasks, among other factors, has made employees more susceptible to security breaches.

Employees can inadvertently create vulnerabilities in enterprise networks through social engineering, phishing attacks, and other malicious methods. Therefore, robust training is now more critical than ever.

A Growing Client Base

Currently, Living Security collaborates with over 100 major enterprises to equip their global workforce with the skills needed to protect sensitive data and bolster organizational security. Their impressive client roster includes CVS Health, Mastercard, Verizon, MassMutual, Biogen, AmerisourceBergen, Hewlett Packard, JPMorgan, and Target.

Significant Growth and Expansion

In 2020, Living Security experienced substantial growth, tripling both its revenue and employee base, and more than doubling its customer count. While specific revenue figures weren't disclosed, the company reported nearly a 200% increase in Annual Recurring Revenue (ARR).

“We’ve observed considerable growth in both account acquisition and expansion within existing accounts,” stated CEO Ashley Rose. “This is largely attributable to the scalability of our digital solution.”

Evolving Towards Predictive Risk Management

Building on the success of their escape rooms and gamified training, the Living Security team sought ways to make their impact more predictable.

“We integrated risk management and scoring mechanisms, enabling program and security owners to focus their training efforts more strategically,” Rose explained.

Living Security now leverages behavioral data and analytics to assess and manage human risk. The company intends to utilize this data to deliver “predictive interventions” to employees.

“Our focus is on transforming people from our greatest security risk into our strongest cybersecurity asset,” Rose emphasized. “This is the overarching vision for the company.”

Introducing the "Unify" Platform

With its “Unify” human risk management platform, Living Security aims to provide a more scalable solution. The newly acquired capital will also be used to broaden the company’s geographic reach and expand both direct and channel sales initiatives.

Currently employing 55 individuals, Living Security plans to increase its workforce to 90 by the end of the year.

Customer Testimonials

Deb Walter, Director of Information Security Training and Awareness at AmerisourceBergen, initially engaged with Living Security in 2017, requesting their CyberSecurity Card game.

“I wanted to introduce gamification into my training presentations,” she recalled.

The introduction of episodic gamification and “bingeable” content proved highly successful with employees, according to Walter.

“Their new platform allows us to launch an ‘Information Security Academy,’ encouraging associates and contractors to participate in various training modes, earn points, and track their progress on a leaderboard,” she added.

Investor Confidence

Jon Seeber, General Partner at Updata, will be joining Living Security’s board of directors following the funding. He expressed his firm’s belief in the startup’s potential.

“The platform comes as close as possible to bridging the gap between individuals and the systems they operate,” Seeber stated.

He also highlighted the company’s ability to move beyond the typical compliance-driven, “check-the-box” approach often found in employee cybersecurity solutions.