3 Million Invested in HSD Partner ZIVVER, Winner Access to Capital Event 2016
On 19 April 2017 Dutch start up ZIVVER has received commitment for an investment of up to 3 million euro from venture capital investor henQ and already involved investors. As Premium partner of the Dutch Security Cluster HSD, ZIVVER shares the idea of being on top of the innovations for Security. In this way ZIVVER also won the pitch competition during the ‘Access to Capital’ event in 2016, which put ZIVVER in the frontline to connect with many potential investors in the (cyber) security market.
ZIVVER’s software allows organisations and private individuals to email, chat and share (very large) files in a secure environment. The software helps people become aware of the risks related to sensitive information and helps prevent data leaks. ZIVVER provides its users with active support by giving targeted warnings and employing simple security measures. "Most data leaks are caused by human error. That’s why ZIVVER warns users even before they hit the send button", says ZIVVER CEO Rick Goud. "It’s a unique, but mostly a necessary solution in these times of cyber crime and stricter rules regarding data leaks."
Dutch Personal Data Protection Act
The Dutch Personal Data Protection Act was tightened in 2016, making it mandatory for organisations to report data leaks. In 2016, organisations reported approximately six thousand leaks to the Dutch Data Protection Authority, which translates to roughly twenty leaks per day. And this number is probably just the tip of the iceberg.
A single data leak can involve the details of thousands of people. As almost 40% of all data leaks originate from healthcare organisations and the public sector, this includes medical and other sensitive data such as Citizen Service Numbers. More stringent privacy legislation will be introduced throughout the European Union starting in May 2018, which will see fines for the failure to protect personal data increase to up to 4% of company revenue. Add to this the damage to the company’s reputation and repair costs, and the impact of a data leak becomes abundantly clear.
Organisations, including many in the healthcare sector, currently use regular email servers, free chat services and online file transfer services on a massive scale. Although these might be easy to use, they are not secure. "Data leaks are a substantial threat for organisations working with sensitive data. ZIVVER provides a secure alternative that is driven by user-friendliness. This focus, coupled with a growing awareness in healthcare and the public sector, means that this company could well grow out to become the prime supplier of secure communication", says Jan Andriessen, Associate Partner at henQ.
Market leadership in healthcare and the public sector
ZIVVER will use the investment to further optimise their Software-as-a-Service (SAAS) solution. Their primary goal is to expand their client base in hospital care, geriatric care, primary healthcare, mental healthcare and the social domains of Dutch municipalities. The company is also scoping out opportunities for further growth in Europe and is investigating new markets, such as the financial services industry. In just two years’ time, the start-up has grown considerably thanks to earlier investments from angel investors in the healthcare sector. Their team now consists of over twenty professionals, and has managed to bring in dozens of clients, including GGZ Rivierduinen, St. Jans Gasthuis hospital and the Gooise Meren municipality. Goud: "Working with henQ allows our team to continue to work hard in order to become market leader."
ZIVVER's Solution for data leaks
ZIVVER was founded in 2015. Their professionals have three key needs: user friendliness, control and preventing data leaks. Secure communication has typically been focused on keeping out hackers, and although that’s important, it’s not enough. Over 50% of data leaks are caused (accidentally) by employees and no form of encryption can stop this. That’s why the software of ZIVVER checks whether the message and any attachments contain sensitive information even before sending it and if necessary, it can automatically encrypt the information.
About investor henQ
henQ launched its third fund in 2015. Its team invests in B2B software companies in the Netherlands and the rest of Europe. The company is characterised by its experience in business. henQ invests in start-ups from the seed phase up to the series A round and continues its investments in following rounds to realise smart international growth.
Read the official press release (in Dutch)