Austin-based SpyCloud Raises $5 Million

Ted Ross, founder and CEO of SpyCloud, courtesy photo.

SpyCloud announced this week that it has received $5 million in venture capital funding.

Austin-based Silverton Partners and March Capital Partners led the Series A round. SpyCloud plans to use the funding on product development, security research and to expand its database of assets. It also plans to hire more employees.

SpyCloud, founded in 2016, previously raised a $2.5 million seed funding round from Silverton Partners and March Capital Partners.

The cybersecurity company has created a software platform, database and other tools that specialize in account takeover prevention. It can find vulnerabilities in a company’s computer system before cybercriminals can strike. SpyCloud’s software flags employees and customer accounts that have security issues early on.

The company uses a database of exposed accounts, leaked passwords and other identification information. It mines that information to check the security of a company’s computer systems and accounts. It has more than “32 billion current assets and billions of new assets being added every month,” according to the company.

SpyCloud reports stolen or leaked passwords is a huge problem. It cites a report from Verizon that shows 81 percent of hacking breaches last year involved stolen or leaked passwords.

SpyCloud’s software, data and tools help companies avoid security breaches and protect their systems from being infected with keyloggers or malware.

“There isn’t a company in the world that doesn’t run the constant risk of having its employee or customer accounts exposed, and that leads to a host of other issues,” Ted Ross, CEO, and co-founder of SpyCloud, said in a statement. “The only chance businesses stand against these increasingly-proficient criminals is to know as soon as possible which accounts have been exposed and to take preventative measures well before credentials make it onto the dark web.”

SpyCloud, which emerged from stealth mode in June of last year, reports it has already protected “tens of millions of employee and customer accounts for notable companies across the finance, retail, healthcare, and technology industries.”

“The continued customer traction and growth SpyCloud has achieved is a testament to both the immediate demand for its technology and the unparalleled collective experience of the team,” Kip McClanahan, general partner of Silverton Partners, said in a news release “We look forward to helping them capitalize on those strengths to make ATO prevention universal table stakes in the enterprise.”

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