An Austin startup founded by two cybersecurity veterans is coming out of stealth mode with a new product and a $2.5 million investment.
SpyCloud, founded last August, is unveiling its platform, which detects data breaches for companies and individuals.
The platform monitors accounts and immediately sends a notification when online assets are exposed on the dark web. SpyCloud says it can reduce breach detection time from months to minutes.
“The proliferation of data breaches and security risks have outpaced companies’ abilities to protect themselves and their consumers,” said Jim Armstrong of March Capital Partners. “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.”
SpyCloud was founded Ted Ross, formerly CEO of Exodus Intelligence and head of Threat Intelligence at HP, and David Endler, formerly CEO of Jumpshot and head of security research for TippingPoint and iDefense.
According to a recent report by Verizon, 81 percent of all data breaches last year were caused by hackers using weak or stolen credentials.
“In today’s environment, organizations cannot ignore exposures that unfold outside of their defenses,” said Ross, SpyCloud CEO. “Monitoring for both company assets and exposures externally is essential for any company with an online presence. We find 40 million stolen records in a week.”
Ross said the company spent the past 10 months operating quietly because “we wanted to make sure our product was rock solid, and didn’t want to come out of stealth until we had a handful of paying customers. We also didn’t want to end up on the bad guys’ radar early in the process.”
SpyCloud, which was the only U.S. company to win the 2017 NATO Defense Innovation Challenge, signed customers largely by sending them notifications that their data had been breached, Ross said.
“We reached out to some victims to let them know if they have employees who have been exposed or compromised,” he said. “From our limited reach, we have signed 5,000 individual subscribers and more than two dozen paying customers.”
SpyCloud, which has offices in the Vuka co-working space in South Austin, has 10 full-time employees and seven contractors, and is hiring developers.
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