Exclusive: Axa XL-backed cyber risk management firm DeNexus cuts headcount by 15%

By James Thaler

Feb 24 - (The Insurer) - Axa XL-backed cybersecurity and risk management firm DeNexus has undertaken a reduction-in-force impacting around 15% of its workforce in a move the company said is intended to “align resources with long-term strategic goals”.

DeNexus was launched in 2019 by founder and CEO Jose Seara and says it delivers an end-to-end cyber risk management solution for industrial sectors and critical infrastructures with network-connected equipment.

It also describes itself as offering a “full-stack solution to industrial cyber risk”, though a spokesperson confirmed that the company does not operate as an insurance provider by acting as an MGA or otherwise.

However, it does provide solutions tailored to the owners of the industrial facilities and to global insurers and risk underwriters.

The company has raised around $33 million in funding since inception, according to data from Crunchbase, including about $13.5 million in a seed round that was disclosed early 2022, backed by a roster of investors that include veteran insurtech venture firm HCS Capital.

Other participants in its seed round included Vestech Partners and WGG Partners, a round that preceded a $17.5 million Series A funding round announced in October 2024 led by Punja Global Ventures.

PGV’s investment appetite includes insurtech and fintech firms along with data services and security companies, as well as startups focused on logistics and supply chains and healthtech companies.

Axa XL also participated in the Series A funding round, with the (re)insurer’s global CUO Libby Benet joining DeNexus as a board observer.

The exact number of roles impacted by the workforce cull could not immediately be confirmed, but LinkedIn data showed around 50 employees associated with DeNexus as of Monday afternoon New York time. The layoffs are understood to have taken place last week.

A spokesperson confirmed the job cuts in a statement to Cyber Risk Insurer and said that DeNexus now has 20 full-time staff after the layoffs.

“We regret that some adjustments to our workforce were necessary, resulting in the elimination of certain positions and impacting less than 15% of our company,” Seara said in a statement.

“While this decision was difficult, it was necessary to align our resources with our long-term strategic goals,” he added.

Seara said the company’s focus remains on positioning itself “for sustained growth and success”.

“By consolidating our workforce in key locations, particularly our headquarters in Boston, we are better equipped to serve our primary market in the USA. This restructuring allows us to concentrate on our core strengths and continue leading the [operational technology] cyber risk management sector,” Seara explained.

Seara said that DeNexus is at the forefront of the growing OT cyber risk management market, providing an end-to-end solution uniquely tailored to industrial sectors such as data centers, energy, manufacturing, transportation and critical infrastructures.

“Our evidence-based methodology, trusted by Global 1000 companies, empowers stakeholders to grasp the financial impact of cyber incidents and optimize cybersecurity programs,” he commented.

Seara said Monday that the market for OT cyber risk management is expanding rapidly, with increasing awareness among risk owners and the insurance industry.

“After years of investment in developing cutting-edge technology for our niche markets — power, manufacturing, data centers, and airports — we are enthusiastic about the future and are committed to delivering exceptional value to our clients and stakeholders,” he concluded.

DeNexus’ website features the names and headshots of the firm’s board of directors, board observers, an advisory board, as well as a CISO advisory board.

However, the list of advisors on the website appears to currently be outdated, with a number of the firm’s advisory board members having updated their LinkedIn profiles in recent months showing that they are no longer working with the firm.

The profile of Rob Duncan, who is chief revenue officer at BlackCloak, indicates he discontinued working with DeNexus in September 2024.

Tom Nuth, head of product marketing for cloud at cybersecurity giant Wiz, has updated his LinkedIn profile to show he discontinued working with DeNexus in August 2024, while the profile for Eric Byres shows he stopped being a strategic advisor in October 2024.