SpyCloud Announces $21 Million in Series B Funding to Revolutionize Account Takeover Prevention
M12, Microsoft’s Venture Fund, and Others Back the Most Proactive and Comprehensive Solution to Account Exposure and Takeover
SpyCloud, the leader in account takeover (ATO) prevention, announced it has secured $21 million in new capital led by M12, Microsoft’s venture fund. The Series B round also includes new investor Altos Ventures and existing investors Silverton Partners and March Capital Partners.
SpyCloud helps prevent ATO by identifying exposed employee and customer accounts and passwords as early as possible, then notifying and helping companies proactively remediate those accounts in an automated fashion, all before criminals can commit fraud or cause significant harm to finances, IP, sensitive data and brand reputation.
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SpyCloud security researchers use multi-tiered underground intelligence gathering techniques and tools to compile the industry’s largest and highest quality database of exposed credentials and personally identifiable information (PII), currently holding more than 60 billion assets overall. In 2018 alone, SpyCloud recovered and analyzed almost 3.5 billion sets of online credentials from nearly 3000 data breaches, combo lists and other dark web sources, with more than 2.6 billion of those sets including a password.
“Passwords and their reuse across personal and work accounts are the leading cause of ATO, one of the most imminent threats to businesses of all sizes,” said Ted Ross, CEO and co-founder of SpyCloud. “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 meets that immediate need.”
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SpyCloud’s product is leveraged to protect millions of employee and customer accounts across hundreds of enterprises in sectors like networking, travel and hospitality, financial services, healthcare, retail and higher education. Enterprise security teams and government agencies also look to SpyCloud for fraud investigations. Furthermore, SpyCloud enables strategic partners to build industry-leading identity monitoring and security solutions for corporate and consumer clients, extending the power of SpyCloud to hundreds of millions of third-party users.
Following the investment round, SpyCloud will continue to grow its security research team and database of uniquely recovered assets, extend R&D and product development to go deeper into specific vertical markets, expand its sales and marketing organization, and increase the company’s international footprint.
“SpyCloud is changing the way modern businesses identify and address cybercrime stemming from account takeovers,” said Leo de Luna, managing director of M12. “We look forward to helping SpyCloud and its outstanding team accelerate protections for both its customers and their users from this fraudulent activity.”
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