Security Due Diligence for Investors: Evaluating Cyber Risk Before Investment

Investors — venture capital, private equity, acquirers — increasingly evaluate cybersecurity as part of due diligence before committing capital. A security assessment reveals: technical debt that could become liabilities, data protection compliance gaps that carry regulatory risk, intellectual property protection adequacy, and the maturity of the target's security program. A penetration test during due diligence provides an objective, evidence-based view of the target's actual security posture — not just what their policies claim.