AUSTIN, Texas--(BUSINESS WIRE)--SpyCloud, Inc. announced today that it is coming out of stealth mode, with $2.5 million in seed funding from Silverton Partners and March Capital Partners, to launch its unique approach to breach discovery. Founded by cybersecurity veterans Ted Ross (former CEO of Exodus Intelligence and head of Threat Intelligence at HP) and David Endler (former CEO of Jumpshot and head of security research for TippingPoint and iDefense), the Austin-based company has built a breach discovery platform that notifies organizations through email or API when their most valued online assets are exposed on the dark web. The only US company to win the 2017 NATO Defense Innovation Challenge, SpyCloud’s technology is powered by a world class intelligence team that is able to recover breached databases from private sources at very high volumes.
“In today’s environment, organizations cannot ignore exposures that unfold outside of their defenses. Monitoring for both company assets and exposures externally is essential for any company with an online presence,” said Ted Ross, CEO and Co-Founder of SpyCloud. “Customers have quickly seen the value of the uniqueness of our data and how easy it is to use the service.”
According to a recent report from Verizon, a staggering 81 percent of all data breaches last year were caused by threat actors using weak or stolen credentials. This enables even an unsophisticated threat actor to compromise a customer account or access a bank’s system with little knowledge of traditional hacking techniques. The company has been focused on the root of this issue by developing its technology and intelligence sources and validating their solution extensively with leading enterprise companies.
SpyCloud’s enterprise clients can use email, an online dashboard and/or an API to monitor for exposed records (email addresses, passwords, PII, Financial Information, etc.) and access the full set of the customer’s historical breach data. SpyCloud’s large enterprise clients (such as online retailers) use an API to proactively monitor and take action when their customers’ credentials are exposed in a 3rd party breach - combating the ever-growing threat of account takeover.
"We see a growing need for breach discovery services, like SpyCloud’s, in the retail sector," said Dan Holden, Intelligence Director of the Retail Cyber Intelligence Sharing Center (R-CISC). "Early detection of breaches and prevention of credential stuffing are essential to fighting fraud and account takeover.”
“Having worked with Ted and Dave at TippingPoint, I've always appreciated their expertise and couldn’t be more excited to invest alongside them and in their vision. Their approach to breach discovery is unique and already very differentiated,” said Kip McClanahan, General Partner at Silverton Partners. “SpyCloud’s early customer traction and product experience make it clear that they have a huge opportunity in front of them.”
“The proliferation of data breaches and security risks have outpaced companies’ abilities to protect themselves and their consumers,” said Jim Armstrong, partner and co-founder, March Capital Partners. “But the SpyCloud team has developed an effective, scalable solution to not only tackle breach discovery head-on but also equip companies with the intelligence they need to minimize damage. With their vast expertise in leading cybersecurity enterprises, we look forward to working with SpyCloud as they grow and help businesses of all sizes better safeguard their data.” March Capital’s investment in SpyCloud follows its investments in other leading companies in the space including Crowdstrike and E8.
SpyCloud is a pioneer in breach discovery. We strive to help businesses of all sizes mitigate data breaches by proactively alerting when employee or company assets have been compromised. We accomplish this through our early-warning breach detection service powered by a world-class team of intelligence analysts. For more information, please visit www.spycloud.com.
About Silverton Partners
Silverton Partners is an early stage venture capital firm based in Austin, Texas. Silverton collaborates with exceptional entrepreneurs who are committed to attacking growth markets with proprietary products or services. The principals of Silverton Partners have over five decades of venture experience, having been the start-up investors in Tivoli Systems (IPO), Silicon Labs (IPO), Motive Communications (IPO), Waveset (acquired by Sun Microsystems) and BlackLocus (acquired by The Home Depot). More information on Silverton Partners can be found at www.silvertonpartners.com.
About March Capital Partners
March Capital Partners is a Santa Monica-based venture capital firm with one of the largest global funds in Southern California. Founded by industry veterans with over 50 years of investing experience, March Capital actively invests in both early and late-stage companies in mobile, enterprise, infrastructure, gaming and other growth industries, with targeted positions in innovative global organizations. For more information, see http://www.marchcp.com.