Austin, Texas-based SpyCloud recently announced it has raised $21 million in Series B funding led by Microsoft’s venture arm M12.
Austin, Texas-based SpyCloud is becoming the leader in account takeover (ATO) prevention as it recently announced a $21 million Series B round of funding led by Microsoft’s venture arm M12. New investor Altos Ventures and existing investors Silverton Partners and March Capital Partners also participated in this round.
SpyCloud is known for helping prevent ATO by identifying exposed employee and customer accounts and passwords as quickly as possible. And then companies and users are notified proactively to remediate those accounts in an automated fashion before hackers can commit fraud and cause significant harm to finances, intellectual property, and brand reputation.
The company’s security researchers utilize multi-tiered underground intelligence gathering techniques and tools to compile the industry’s largest database of exposed credentials and personally identifiable information (PII). Currently, the company holds more than 60 billion assets overall. And in 2018, SpyCloud recovered and analyzed nearly 3.5 billion sets of online credentials from nearly 3,000 data breaches, combo lists, and other dark web sources — of which more than 2.6 billion of those sets include 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 SpyCloud Ted Ross, CEO and co-founder in a statement. “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.”
SpyCloud’s product is utilized for protecting millions of employee and customer accounts across hundreds of enterprises in sectors such as travel, hospitality, financial services, healthcare, retail, and higher education. Plus enterprise security teams and government agencies also turn to SpyCloud for fraud investigations. And SpyCloud enables its strategic partners to build identity monitoring and security solutions for corporate and consumer clients.
“SpyCloud is changing the way modern businesses identify and address cybercrime stemming from account takeovers,” added M12 managing director Leo de Luna. “We look forward to helping SpyCloud and its outstanding team accelerate protections for both its customers and their users from this fraudulent activity.”
With this funding round, SpyCloud is going to continue its security research team and database of uniquely recovered assets, extend research and development and product development to go deeper into specific vertical markets. And the company is going to expand its sales and marketing organization and further drive its international reach.