Target Information

Adara is pleased to announce its latest investment in Hdiv Security, an innovative cybersecurity startup based in San Sebastián, Spain. Hdiv specializes in application security, offering a range of products designed to safeguard web applications and Application Programming Interfaces (APIs) from potential threats. Under the leadership of CEO Roberto Velasco, Hdiv is poised to make significant contributions to the cybersecurity landscape, and we are excited to partner with the talented team at Hdiv.

Hdiv’s co-founders, including COO Gorka Vicente and Software Engineer Gotzon Illaramendi, have developed a unique approach to application security. Their tools are tailored for software developers, enabling them to proactively address security vulnerabilities during the design and build phases of web applications. This integrated method distinguishes Hdiv from traditional security solutions.

Industry Overview in Spain

The cybersecurity industry in Spain has experienced considerable growth in recent years, propelled by the rapid digital transformation across various sectors. Increased mobile phone penetration and the expansion of cloud infrastructure have led to a surge in web applications, amplifying the need for robust security measures. However, the sector faces challenges, including a shortage of cybersecurity professionals, which has compelled many developers to turn to third-party solutions for securing their web applications and APIs.

Cyber threats are on the rise, with a substantial portion of breaches emanating from vulnerabilities within web applications. According to the Application Security Statistics Report by Whitehat, web applications accounted for approximately 30% of reported breaches in 2017—the highest rate recorded. This alarming trend highlights the vulnerability of businesses and users alike to increasingly sophisticated cybercriminal tactics.

Despite the critical importance of security, many developers continue to perceive it as an afterthought, often relegating it to post-launch measures. Traditional firewalls, commonly used for protection, can inadvertently impede legitimate traffic while failing to adequately safeguard applications. This results in numerous false alerts that consume valuable resources and time, further complicating the ongoing development process.

The Rationale Behind the Deal

Adara’s investment in Hdiv reflects our commitment to supporting innovative solutions that address significant pain points within the rapidly evolving cybersecurity landscape. Hdiv’s proactive developer tools align with our belief that integrating security into the development process can dramatically enhance the efficiency of software development teams while improving the overall security posture of organizations.

With a solution that combines detection (Interactive Application Security Testing, or IAST) and protection (Runtime Application Self-Protection, or RASP) into a single platform, Hdiv stands out in the industry. Additionally, the widespread adoption of Hdiv’s community version by a growing number of developers, including those from Fortune 500 companies, speaks to the utility and effectiveness of their offering.

Information About the Investor

Adara is a prominent investment firm focused on supporting high-potential technology startups. With a keen interest in cybersecurity and developer tools, we have built a robust portfolio, culminating in our investment in Hdiv Security. Our experience with seed-stage investments has enabled us to identify and nurture successful companies in emerging sectors.

Our previous successes, including the significant exit from AlienVault, which was acquired by AT&T and marked the largest technology exit by a Spanish-born company, provide us with both the expertise and confidence to back Hdiv. We aim to leverage our industry knowledge and network to help Hdiv achieve its growth potential and capture a larger share of the cybersecurity market.

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The investment in Hdiv represents a promising opportunity within the burgeoning cybersecurity domain. The increasing reliance on web applications, coupled with the rising tide of cyber threats, underscores the need for innovative security solutions that can integrate seamlessly into development workflows. Hdiv's approach of embedding security tools within the development process is not only timely but essential for modern software development practices.

Our analysis indicates that Hdiv's offerings will significantly alleviate common frustrations developers face, such as time-consuming manual penetration testing and extensive code maintenance. By streamlining these processes, Hdiv empowers developers to focus on product innovation while enhancing application security, creating a win-win scenario for both businesses and users alike.

Furthermore, the traction that Hdiv has gained, particularly within Fortune 500 companies, highlights the growing recognition of the importance of application security. This validates our belief in Hdiv's long-term sustainability and potential for scalability in the fast-growing cybersecurity sector.

In conclusion, we believe this investment will not only benefit Hdiv but also position Adara as a key player in the cybersecurity space, fostering innovation that meets the pressing demands of today’s digital landscape.

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