- Austin, Texas-based cybersecurity firm SpyCloud has raised $35 million in financing.
- The capital will be used to expand the company’s solutions to help businesses investigate and defend themselves against cybercrime in general and account takeover fraud in specific.
- SpyCloud won Best of Show in its Finovate debut at FinovateFall 2017 in New York.
In a round led by CIBC Innovation Banking, Texas-based cybersecurity company SpyCloud has secured $35 million in growth financing. The investment follows SpyCloud’s $110 million Series D fundraising from August 2023, and will be used to expand the firm’s solutions to help businesses investigate and defend themselves against financial crime.
“As the threat landscape continues to evolve, it’s imperative that digital identities are well protected since they’re the entry point for so many targeted attacks,” SpyCloud CEO and Co-Founder Ted Ross said. “Building automated solutions that combat cybercrime has been our vision since day one, and the financing we received from CIBC Innovation Banking will allow us to continue innovating and growing.”
SpyCloud’s total capital raised stands at more than $203 million, according to Crunchbase. CIBC Innovation Banking is the investment division of Canadian Imperial Bank of Commerce.
SpyCloud specializes in helping firms combat account takeover. The company’s platform scans and analyzes data from breaches, devices infected with malware, and the dark web to find employee login credentials that have been exposed. SpyCloud leverages this data to provide companies with actionable insights to enable them to blunt fraud losses, stop ransomware attacks, and fully investigate cybercrime incidents as they occur.
With customers ranging from Uber, Zscaler, and Samsonite to LendingTree, Canva, and the University of Oklahoma, SpyCloud recaptures 40 million exposed assets every week. The company’s technology seamlessly integrates into a variety of identity response and orchestration systems including Active Directory, Okta, Microsoft Sentinel, Splunk, and more.
Founded in 2016, SpyCloud won Best of Show in its Finovate debut at FinovateFall 2017 in New York. Headquartered in Austin, Texas, the company has more than 550 customers around the world and has recaptured more than 560 billion identity assets. This spring, SpyCloud released its 2024 SpyCloud Identity Exposure Report, which indicated that more than 60% of all data breaches in 2023 were malware related.
“Threat actors are linking together identity records from hundreds of sources to impersonate their victims,” SpyCloud Chief Product Officer explained, “making it extremely difficult for platforms to differentiate between legitimate users and criminals.”
To this end, the report indicates that there is plenty that individuals can do to make it harder for them to be the victim of stolen credentials. Foremost among these strategies is better password hygiene. SpyCloud recaptured nearly 1.8 billion passwords from dark web sources in 2023 alone – a year-over-year increase of more than 80%. Unfortunately, it is not difficult to see how. Beneath a subhead titled, “The U.S. government continues to struggle with bad password practices,” the report observed “the most common passwords associated with .gov emails were password, pass1, and 123456.”