Cyber RX Investment Review
A Cyber RX Investment – Cyber RX is an online measurement and analytical tool that helps companies quantify and manage their cyber security risks and improve their cyber security readiness. The Cyber RX product allows for a quick assessment of a company or organization’s cybersecurity readiness based on the NIST cybersecurity standards and best practices. The Company owns a trademark and has submitted a provisional patent application in May 2015. Cyber RX appears to have strong and experienced management.
Cyber RX seeks $2 million in funding for product enhancement and sales and marketing.
When I apply the Business Godfather assessment of whether they are an Investable Business for me I look at:
- The Innovation Area
- Size of the Opportunity
- Inefficiency Capture
Innovation Area: Big Data
Cyber Security is an absolute growth area as more and more companies and organization use Big Data approaches and more and more companies and organizations fail to protect the Big Data systems they have created.
Size of the Opportunity
Although Cyber RX cites the potential size of the cyber security market as projected to be $61 billion in 2019, Cyber RX is initially only addressing assessment and evaluation of systems which is a much smaller piece of this market. The real opportunity is in the remediation and ongoing monitoring of the security issues unearthed by the assessment. The better business opportunity is in using the Cyber RX tool to support a services business. This approach would hamper the ability of the business to scale but would provide more predictable means of growth, funding and profit.
The Cyber RX product purports to conduct a full assessment in hours rather than weeks and months. In this case the benefits flow to the user and the cost is borne by the company. It is not clear how much of the inefficiency Cyber RX is positioned to capture. Pricing of the tool will likely get commoditized.
Business Godfather Commentary
Cyber RX is in a growing industry but likely must rely on services to fuel its growth and profitability. Cyber RX looks to be a strong business but not one that necessarily needs outside investment. My recommendation would be for Cyber RX to pursue an organic growth strategy fuelled by the founding members sales efforts rather than spending too much time pursuing funding.
This Presentation Review is my opinion based on extremely limited information – a 1 page write up and 5 minute presentation. My assessment might change if I had conducted more thorough due diligence. I provide this assessment for educational purposes in applying the Business Godfather Investable Business Analysis. Entrepreneurs are always swimming against a universe of people who may not fully understand their true business innovation and that may apply to me.