Cyber security specialist Digital Shadows has raised $26 million (£19m) to expand its digital risk management service and fuel global expansion.

The Series C funding round was led by Octopus Ventures, with participation from World Innovation Lab, Industry Ventures and all existing investors.

The funding will enable the London-based firm to meet increasing customer demand for its SearchLight digital risk management service.

"This funding event is a huge milestone for Digital Shadows so we can expand our lead to offer the best digital risk management service in the industry,” CEO and co-founder Alastair Paterson said.

“We are excited to have the support of the likes of Octopus, World Innovation Lab and Industry Ventures as we embark on the latest phase of our development and continue to expand our geographic coverage and SearchLight service to help our customers manage their digital risk to protect their business, brand and reputation."

SearchLight combines scalable data analytics with human analysis to give Digital Shadows’ customers the context and awareness they need to protect their digital footprint from the risks of cyber threats and data exposure, among others.

It has recently added mobile application support and increased Dark Web capabilities, and the latest funding is expected to speed up the rate of innovation further. 

Matt Hancock, Minister of State for Digital, said: “UK tech companies have attracted some £28 billion in technology investment over the past five years, more than double France or Germany.

“UK companies like Digital Shadows are tapping into the unique blend of British-based talent, and are pioneering innovative solutions to help combat the growing problem around digital risk. The momentum behind British tech is strong and cementing the UK as the place to start and grow a tech business.”

Luke Hakes, investor at Octopus Ventures, will be joining the board of directors as part of the funding round.