SpyCloud, an Austin, Texas-based account takeover (ATO) prevention provider, secured $21m in Series B funding.
The round was led by M12, Microsoft’s venture fund, with participation from new investor Altos Ventures and existing investors Silverton Partners and March Capital Partners.
The company intends to use the funds to grow its security research team and database of recovered assets, extend R&D and product development to go deeper into specific vertical markets, expand its sales and marketing organization, and increase its international presence.
Founded in 2016 by Ted Ross, CEO, 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 automatedly, all before criminals can commit fraud or cause significant harm to finances, IP, sensitive data and brand reputation.
SpyCloud security researchers use multi-tiered underground intelligence gathering techniques and tools to compile the database of exposed credentials and personally identifiable information (PII), currently holding more than 60 billion assets overall.
In 2018, the company 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.
The product is used by hundreds of enterprises in sectors like networking, travel and hospitality, financial services, healthcare, retail and higher education.