Austin cybersecurity startup SpyCloud, which prevents account takeovers, said Wednesday that it has raised $21 million to expand its security research team and ramp up product development.
SpyCloud’s platform specializes in detecting breaches of employee account information. It monitors accounts and sends a notification before accounts and passwords are posted on criminal forums and dark markets. The company also protects employees’ personal credentials.
Microsoft’s venture fund, M12, led the funding round, which also included new investor Altos Ventures. Silverton Partners, based in Austin, and March Capital Partners were returning investors in the deal.
“As criminals use more complex, scalable methods to collect and weaponize compromised passwords, organizations need to take proactive measures to prevent, detect and remediate exposures,” SpyCloud CEO Ted Ross said in a written statement. “SpyCloud meets that immediate need.”
The company has 40 employees total, with roughly 30 based in Austin. SpyCloud did not provide specifics on how many employees it plans to add.
SpyCloud was founded by 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 company was founded in 2016 and came out of stealth mode in June 2017, unveiling a new product and a $2.5 million investment. SpyCloud also raised $5 million last March.
Following SpyCloud’s latest funding round, the company said it expects to grow its employee headcount an ramp up product development, sales and marketing and increase the company’s international footprint.
“SpyCloud is changing the way modern businesses identify and address cybercrime stemming from account takeovers,” Leo de Luna, Microsoft’s M12 managing director, said in a written statement. “We look forward to helping SpyCloud and its outstanding team accelerate protections for both its customers and their users from this fraudulent activity.”
The SpyCloud funding continues a strong start to the year for Austin’s venture capital scene. In the first two months of the year, more than $550 million in VC deals have been made with local companies, American-Statesman research shows.
This article provided by NewsEdge.