SpyCloud, a leader in operationalizing identity analytics to automate the protection of digital identities, yesterday announced it has closed a $110 million growth round commitment of primary and secondary capital led by Riverwood Capital, a global investor in high-growth technology companies. More than 500 market leaders across every industry – including half of the Fortune 10 – already use SpyCloud to thwart cybercrimes including ransomware, account takeover, session hijacking, and online fraud.
Capitalizing on its proprietary engine that recaptures and analyzes data from the criminal underground and automates the remediation of exposed authentication and identity data, SpyCloud takes a novel approach to disrupting cybercrime compared to traditional methods like threat intelligence, and adds value to IAM, identity threat detection and response, endpoint protection, and zero trust frameworks.
SpyCloud’s platform identifies and remediates stolen employee and consumer session cookies, credentials, and emerging forms of authentication data being actively used by criminals to target enterprises, their customers, and their supply chains. Its latest solution, SpyCloud Compass, enables Post-Infection Remediation of malware exposures, including the compromised assets most likely to lead to ransomware attacks.
With this funding, SpyCloud plans to:
- Accelerate innovations across Enterprise Protection, Consumer Risk Protection, and Investigations use cases
- Release authentication bypass prevention solutions that protect businesses and consumers from compromised passkeys
- Grow its industry-leading database of recaptured malware assets, delivering new insights to help customers and partners stay ahead of the most advanced cyber threats
- Evolve analytic capabilities that link exposures of personal and corporate identity and authentication data to promote an identity-centric view of security that goes beyond the device-centric limits of most corporate security teams
- Bolster its growing list of integrations, which already includes Active Directory, Okta, and Tines, among others – partnering with leading identity, incident response, orchestration, and directory services tools
- Expand its go-to-market teams globally to help organizations adapt to the heightened interest in identity protection
“For the last seven years, we have proven that reacting quickly to identity and authentication exposures is the crucial factor in stopping the cycle of cybercrime,” said Ted Ross, SpyCloud CEO and Co-Founder. “As authentication methods improve, businesses need to adjust their defenses to keep up with criminals’ new behavior. SpyCloud allows you to do just that – and we will continue to illuminate and resolve the most critical risks facing security teams today, stopping attacks they haven’t been able to see coming.”
Sustained Growth
The company’s vision to address the identity-related threats has led to immense and sustained growth in recent years. Following a $30 million Series C funding round in 2020, SpyCloud tripled its revenue and created cutting-edge solutions to mitigate new and prevalent cyberattacks for large and mid-sized enterprises including top financial institutions, retailers, and software and technology companies. Its partnerships include popular identity monitoring services and MSSPs who leverage SpyCloud’s analytics to deliver ongoing value to consumers and businesses of all sizes.
“Today, a significant majority of cyberattacks use identity-based techniques. We see a growing need for identity threat prevention solutions to address this threat vector and SpyCloud stands alone as a leader in identity protection,” said Jeff Parks, Co-Founder and Managing Partner at Riverwood Capital. “SpyCloud has demonstrated its unique capabilities in detecting identity-related threats and helping enterprises, including some of the largest companies in the world, take preventative steps to limit widespread damages. We are excited to partner with Ted and SpyCloud’s extraordinary team as they build on the company’s success and continue to disrupt the cybersecurity industry.”
Silverton Partners, a long-time SpyCloud investor and additional participant in this funding round, views SpyCloud as a market innovator for its proven ability to stay ahead of cybercriminals.
“Silverton is excited to participate in SpyCloud’s financing and continue our long-standing support of a true market innovator. SpyCloud’s products defend against sophisticated attackers by anticipating the evolution of criminal tactics in a way no other vendor has accomplished,” said Kip McClanahan, General Partner at Silverton Partners, investors in the company since its seed round. “This advanced thinking and dedication to the industry has been consistent since day one and is a core driver of the company’s impressive growth.”
SpyCloud’s technology innovation has garnered prominent accolades and awards including recognition as a 2022 Deloitte Technology Fast 500 recipient, an SC Award for Best Threat Detection Technology, a Global InfoSec Award for Enterprise Security and three Gold Cybersecurity Excellence Awards for Insider Threat Solution, Ransomware Protection and Fraud Prevention. Additionally SpyCloud has consecutively ranked as a Top Ten Best Place to Work by the Austin Business Journal.
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