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Security starters get paid for a surge in cyberattacks

On Friday night, October, Gray Rock venture capitalist Chandna said he introduced another investor to Abnormal Security, the CEO of the email security company he invested in. Investor Venky Ganesan of Menlo Ventures, who had been in a meeting with CEO Evan Reiser for months, immediately emailed Reiser and invited him to dinner that evening.

Riser said he had driven to Ganesan’s home in Atherton, California, about 30 miles from San Francisco. By the end of the weekend, Abnormal had signed a deal to raise $ 50 million on a $ 600 million valuation, bringing its total funding to $ 74 million. Menlo’s $ 40 million check was the biggest investment ever.

“As the shotgun marriage progresses, it’s the shotgun you can get,” Ganesan said.

Since then, ransomware attacks have further boosted the funding wave.

In January, Lacework, a cloud security startup in San Jose, California, raised $ 525 million in funding. The company’s chief human resources officer, Andy Byron, contacted investors with a racework product that uses artificial intelligence to identify threats. Racework has raised a total of $ 625 million since its inception in 2015.

Mike Spiser, a venture capitalist at Satterhill Ventures, who led the January funding for Racework, said he had no problem getting other investors involved.

“I called the five people I thought were the best investors and asked if they were interested. They were all interested and signed the deal within 48 hours.” Said Speiser. “100% of the people I called said they wanted. We could have raised well over $ 1 billion.”

“All of these ransomware combined with nation-state attacks have made people very aggressively move to the cloud,” said David Hatfield, who joined the startup as CEO in February, boosting Lacework’s business. I am presenting it.

Security starters get paid for a surge in cyberattacks

Source link Security starters get paid for a surge in cyberattacks

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