Series A

Allegis and Accel partner for Callsign’s $35M Series A to Support Global Expansion

  |   Allegis News, Portfolio News, Series A, The Latest
  • Investment used to roll-out Callsign’s authentication platform to enterprises, financial institutions and consumer-facing digital services and to ramp-up hiring

 

  • Seasoned cybersecurity executive and Allegis Venture Partner David DeWalt joins the board as Vice Chairman along with Bob Ackerman Founder of Allegis Capital

 

San Francisco/London, July 27th, 2017: Callsign, the leading artificial intelligence-based authentication platform, has raised a $35 million Series A investment led by premier, early stage cyber security investor Allegis Capital and global venture capital firm Accel. Early-stage investor PTB Ventures and cybersecurity industry veteran David DeWalt’s NightDragon Security also participated in the round.

 

With the proliferation of data breaches, advanced threats resulting in stolen user credentials, there is increasing pressure on companies of all sizes around the world to implement better authentication practices. In 2015 alone, cybercrime cost businesses $500 billion, and this is estimated to rise four times to $2 trillion in 2019[1]. At the same time, companies want to minimize the friction that universal two-factor authentication introduces to the user experience.

 

In response, Callsign developed a deep learning-based authentication platform called Intelligence Driven Authentication™ (IDA). It enables enterprises to select the most secure and least invasive authentication journey for each user in real-time, based on his or her risk profile and tendencies – in other words, it adapts the type of authentication to the situation virtually eliminating advanced threats such as spear phishing. The result is an experience that optimises for both security and usability – a win-win for the enterprise and the end user.

 

Callsign’s IDA platform uniquely derives the complete intelligence picture around authentication and authorisation events, giving enterprises the ability to set adaptive policies that pinpoint suspicious usage. While Callsign can be can be deployed with out-of-the box mobile authenticators, it is a very open and flexible platform to which enterprises can easily plug-in existing authenticators or data sources. Callsign has also integrated with several Identity and Access Management providers, like ForgeRock, to provide a truly end-to-end solution.

 

Callsign was founded in 2012. Its clients are enterprises, financial institutions and consumer-facing digital services and include some of the world’s largest banks, such as Lloyds Bank and Deutsche Bank. It’s being deployed to hundreds of thousands of users globally.

 

Zia Hayat, Founder & CEO of Callsign, said: “Several years ago, I realized that the way we identify ourselves online was very broken. I knew we needed to make existing solutions like multi-factor authentication and fraud analytics better by bringing them together. Our IDA platform has had an incredible reception from financial institutions, governments and other large enterprises, and this investment will allow us to grow the business and meet some of the strong demand we’re seeing.”

 

DeWalt, a Venture Partner with Allegis Capital and formerly President and CEO of McAfee and CEO and Executive Chairman of FireEye, will join the board of directors as Vice Chairman. DeWalt brings more than 25 years of experience in the cybersecurity sector, and is widely recognized as one of the industry’s most successful executives. He currently holds a number of board positions at leading cybersecurity companies, including Vice Chairman of ForgeRock and Vice Chairman of ForeScout Technologies, among others.

 

DeWalt said: “Zia and his exceptional product and engineering team have built the foundations of a very solid business. They are pioneering a new approach to authentication with a powerful product that is quickly attracting some of the world’s leading businesses as customers. As the company rolls out its solution, it’s an exciting time to be joining the board.”

 

The new investment will help accelerate the growth of the company. Callsign will be expanding globally from its headquarters in London, with a particular focus on the US and Far East, and is planning to open offices in both the Bay Area and New York City in the next few months. Callsign will be building out its engineering and commercial teams as well, including sales, marketing and business development roles.

 

Bob Ackerman, Allegis founder and Managing Director will also be joining the Board.  Ackerman said, “authentication of identities has become a core pillar in enterprise cyber security. Callsign’s IDA represents a breakthrough in meeting levels of identify assurance that are essential to enterprise operations without compromising the effectiveness and efficiency of digital business platforms. Callsign is leading the industry in delivering identify assurance without compromise,” Ackerman added.

 

Harry Nelis of Accel and Dave Fields from PTB Ventures are also joining the Callsign board of directors.

 

About Callsign Inc.

Callsign is the leading artificial intelligence-based authentication platform for enterprises, financial institutions and consumer-facing digital services. Its unique Intelligence Driven Authentication™ (IDA) solution enables more informed and truly adaptive access control decisions, putting enterprises and their users back in control. This creates frictionless access for users, whilst reducing false rejection rates and increasing security as well as operational agility.

 

Callsign serves Tier 1 banking clients, government bodies and enterprises throughout Europe and the US. Their IDA technology puts enterprises and users back in complete control. For additional information please visit callsign.com

 

About Allegis Capital

Allegis Capital is a premier, early-stage venture firm that invests solely in cybersecurity and was the first venture fund to focus strictly on cyber. In addition to Callsign, current investments include Area 1, Bracket Computing, Cyber GRX, E8 Security, RedOwl, Shape Security, Signifyd, Synack, tCell.io and vArmour. Allegis is also a founding partner in cyber Start-Up Studio, DataTribe, based in Columbia, Maryland. Allegis Capital is based in San Francisco Ca.

 

 

About Accel

Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth. Atlassian, BlaBlaCar, Cloudera, Crowdstrike, Deliveroo, DJI, Dropbox, Etsy, Facebook, Flipkart, Forescout, ForgeRock, Funding Circle, Kayak, QlikTech, Slack, Spotify, Supercell and WorldRemit are among the companies the firm has backed over the past 30 years. The firm seeks to understand entrepreneurs as individuals, appreciate their originality and play to their strengths. Because greatness doesn’t have a stereotype. For more, visit www.accel.com, www.facebook.com/accel or www.twitter.com/accel.

 

About PTB

PTB Ventures is a thesis-driven venture capital firm investing in early-stage companies in the emerging digital identity ecosystem. Digital identity is the cornerstone of a transformation that will see trillions of networked devices connected to billions of humans. This transformation will create unprecedented economic expansion and a new level of security and access to billions of people. PTB is headquartered in New York City.

 

 

[1] https://www.juniperresearch.com/press/press-releases/cybercrime-cost-businesses-over-2trillion

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tCell Closes $9.4M Series A to Secure Cloud-First Organizations Limited By Traditional Network-based Security

  |   Portfolio News, Series A, The Latest

SAN FRANCISCO and WASHINGTON, Oct. 12, 2016 | PRNewswire | Today, at the AppSecUSA conference, tCell announced that it has closed a $9.4M Series A round of financing from Menlo Ventures, A Capital, Allegis Capital, Webb Investment Network, CrunchFund, and SV Angel.

Cloud infrastructures force organizations to re-architect how they do security. Traditionally, security is part of the network (e.g., firewalls, web application firewalls, intrusion prevention systems), and any cloud comes with its own built-in security. The customer’s security has to go into the one thing they own – the app.

tCell enables customers to deploy self-defending apps – giving organizations application visibility and protection, with a simple deployment that embraces DevOps and is completely agnostic to infrastructure – whether it be virtualized, public/private cloud, containers, or anything else.

“We see DevOps and cloud infrastructure impacting everything in IT – including security,” said Mark Siegel, Managing Director at Menlo Ventures. “We believe the information security market is on the cusp of significant change – with value moving from networks to software, and we are acting accordingly.”

tCell also named Steve Mullaney to the board as an independent director, gaining access to Steve’s experience moving infrastructure and security markets from hardware to software at Palo Alto Networks, Nicira, and VMware. “Many of the traditional approaches to security are limited in this new world – faster application deployments, more dynamic applications, and the loss of many of the places we used to put security – like the network,” said Steve Mullaney, director at tCell. “Applications that defend themselves will become the new normal.”

tCell was founded in late 2014 by Michael Feiertag and Boris Chen. Previously, Michael ran products at Blue Coat and Okta, and Boris was VP of Engineering at Splunk.

About tCell:

tCell moves application security out of the network for cloud-first organizations. Using in-application instrumentation and cloud-based analytics, tCell secures production applications, enabling organizations to assess, monitor, and defend their application – without code or network changes. Whether an organizations’ applications are on-premises or cloud-based, tCell’s unique approach makes application security easy.  Learn more at tcell.io

SOURCE tCell

Article found here:  PRNewswire

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WSJ | CyberGRX Emerges With $9M to Set Standards for Security Risks

  |   Portfolio News, Series A, The Latest

By Deborah Gage  |  July 14, 2016 7:30 a.m. ET

Logo_TheWSJ

One of the hardest places for companies to protect from cyberattacks is the holes opened by companies closest to them—their partners, customers and vendors.

The most famous case may be Target Corp., which lost data on 40 million debit and credit accounts along with personal information for as many as 70 million customers after hackers penetrated its network in 2013 by stealing the credentials of a Target refrigeration contractor.

Target’s chief executive and its chief information officer resigned, and a proxy adviser, Institutional Shareholder Services, urged that seven of Target’s 10 board members be ousted for failing to protect the company.

In an effort to avoid similar problems and to set an industry standard for assessing security risks, venture capitalists and several large companies—some named and some not—have banded together to form CyberGRX, a startup that has been in the works for more than 18 months. GRX stands for Global Risk Exchange.

The Denver-based company has raised $9 million in a Series A round led by Allegis Capital and includes numerous other investors and advisers.

Some of them—including Aetna Chief Information Security Officer Jim Routh, MassMutual Chief Information Risk Officer Sri Dronamraju and Blackstone Chief Information Security Officer Jay Leek—are helping CyberGRX design a software platform and business processes that will guide companies in assessing their own security risks and the risks of their partners.

“If you’re shopping for a home, you can go to Zillow and there are countless homes, but you’re probably going to hire a home inspector to look at the piping and make sure there are no foundational issues,” said Chief Executive Fred Kneip, who previously headed security for the investment management firm Bridgewater Associates. “So let’s understand how you think about the core components of a cybersecurity program and its levels of maturity and effectiveness.”

Allegis Capital founder Bob Ackerman said he has been thinking about the problem since at least 2014 and couldn’t find companies on the market with a comprehensive enough approach. A Blackstone portfolio company, Optiv Security LLC, is also working on CyberGRX because its customers are concerned about third-party security risks, Mr. Ackerman said.

The challenge with current cybersecurity assessments is that they are labor-intensive, expensive and prone to disagreements over what questions should be asked and how they should be phrased, according to CyberGRX’s founders.

fred

Photo: CyberGRX’s Fred Kneip.

Fortune 500 companies generally have thousands of partners and may only evaluate the most important ones, although “you don’t have to be a big partner to represent a significant cyberrisk,” Mr. Ackerman said.

Companies may be loath to admit they have risks. “If it’s self-reported, no one will say I don’t have [a password rotation policy],” said GV General Partner Karim Faris, an investor, although even asking the question can spark a company to get one.

Mr. Faris said CyberGRX’s success will depend on its ability to figure out the most effective set of questions that will work across a wide range of companies and balance those with on-site visits where inspectors know what to home in on.

Mr. Leek said CyberGRX relies on the strength of its relationships with chief information security officers at global companies who are collaborative, understand security risks and agree with CyberGRX’s approach.

CyberGRX expects to release a product in early 2017. Founders say a standard security assessment could provide a foundation for other industries, like cyber insurance.

Investors who participated in the funding include Blackstone, TenEleven Ventures, Rally Ventures, GV (formerly Google Ventures) and MassMutual Ventures along with several individuals and unnamed strategic investors.

Board members include Mr. Ackerman, Mr. Kneip, Mr. Leek, TenEleven Ventures founder Mark Hatfield, ClearSky Power & Technology Fund Managing Director Alex Weiss and Cylance CEO Stuart McClure.Logo_cyberGRX

Find more @

http://www.wsj.com/articles/cybergrx-emerges-with-9m-to-set-standards-for-security-risks-1468495804

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Third-Party Cyber Risk Management Platform Company CyberGRX Closes $9M Series A Funding

  |   Portfolio News, Series A, The Latest

 

 

Third-Party Cyber Risk Management Platform Company CyberGRX Closes $9M Series A Funding

 

Allegis Capital Leads Round with Participation from Major Cybersecurity Investors;
Platform Being Developed in Close Collaboration with Early Adopters at Leading Institutions

 

DENVER – July 14, 2016 – CyberGRX, provider of the most comprehensive third-party cyber risk management platform, today announced that it closed $9M in Series A funding led by Allegis Capital, with participation from Blackstone, TenEleven Ventures, Rally Ventures, GV (formerly Google Ventures), MassMutual Ventures and several other strategic investors. The company will use the funding to deliver the CyberGRX platform to market. The platform is developed in partnership with its early adopters, which include chief security and risk officers from Aetna, Blackstone, MassMutual and several other leading institutions across business sectors.

As enterprises’ dependence on their partner ecosystems grows, so does their exposure to breaches from these key vendors, partners and customers. A recent Ponemon Institute report, “ Data Risk in the Third-Party Ecosystem,” found that nearly half (49 percent) of all organizations had recently reported that they experienced a data breach caused by a vendor, and nearly three out of four (73 percent) enterprises expect third-party related incidents to increase. And the damage, both in terms of reputation and actual dollars and shareholder value lost, is real. A recent survey of 170 large enterprises by consulting firm Deloitte found that 28 percent of respondents had faced major business disruption due to third-party data breaches, and more than one in four (26 percent) organizations suffered reputational damage as a result. An astounding 87 percent of the enterprises surveyed admitted to “disruptive incidents” with third parties in the last 2-3 years. It is evident that boards, CEOs, business leaders, and risk and security managers need a better way to manage this exploding third-party cyber risk.

Despite this growing need, substantial inefficiencies continue to exist on both sides in the current approach. Enterprises focus the vast majority of their time collecting data, rather than performing risk management and mitigation processes to reduce the residual security risk third parties represent. At the same time, vendors and partners spend too much time, energy and money completing questionnaires and hosting on-site security assessments.

“CyberGRX is built by security practitioners who bring a risk-based perspective to security control assessment,” said Fred Kneip, CEO of CyberGRX. “CyberGRX helps enterprises not only automate and standardize the collection of information, but also prioritize, evaluate and remediate risk. Instead of incrementally improving what people do today, CyberGRX fundamentally changes the way organizations address cyber risk in an increasingly interdependent world.”

Commercially available in early 2017, CyberGRX provides the most comprehensive third-party cyber risk management platform, addressing existing inefficiencies and creating benefit for both enterprises and for their partners and vendors. Through its innovative design, automation and advanced analytics, the CyberGRX platform enables enterprises to cost-effectively and collaboratively identify, assess, mitigate and monitor an enterprise’s cyber risk exposure across its entire vendor, partner and customer ecosystem.

About CyberGRX

CyberGRX provides the most comprehensive third-party cyber risk management platform to cost-effectively identify, assess, mitigate and monitor an enterprise’s risk exposure across its entire partner ecosystem. Through automation and advanced analytics, the CyberGRX solution enables enterprises to collaboratively mitigate threats presented from their increasing interdependency on vendors, partners and customers. CyberGRX is based in Denver, CO with offices in McLean, VA. For more information, visit www.cybergrx.com or follow @CyberGRX1 on Twitter.

Contact:
Ted Weismann
fama PR for CyberGRX
(617) 986-5009
CyberGRX@famapr.com

Find more @ https://www.cybergrx.com/press.html

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PYMNTS.com | Investors Make Last-Minute Play For B2B FinTechs

  |   Portfolio News, Series A, The Latest

Apruve-Fintech

While last week was a fairly impressive week for B2B venture capital, investors swooped in on their dark horses to give an extra bump to B2B financial services startups.

The first came Thursday (June 23) when reports emerged that Apruve secured $2.25 million in venture capital funding led by TTV Capital and Allegis Capital. Apruve provides financial management solutions for small businesses that operate in the B2B eCommerce space. According to reports, it enables companies to accept online orders from business customers and provides instant credit for their sales.

The Series A funding will be used to scale up the company, reports said. “We believe Apruve is solving a fundamental problem that well enable more businesses to ride the $1.3 trillion wave of B2B eCommerce that is currently unfolding,” said TTV managing director Tom Smith in a statement. “Their solution takes on outdated accounts receivable processes, automates it then underwrites the credit risk for the seller.”

Apruve integrates into eCommerce platforms like Shopify, Magento and BigCommerce.

Across the pond, U.K. startup Satago raised about $6.3 million from backers for its eInvoicing solution, reports also said Thursday.

The company provides a database for companies to see how well other businesses are paying their invoices on time. It provides automated invoices, payment requests and reminders, and credit reporting solutions into its service, geared toward micro-businesses and freelancers that need to manage outstanding bills from clients.

The funding, provided by ESF Capital, coincides with Satago’s launch of Invoice Finance. The new service that provides freelancers with access to working capital by funding 85 percent of outstanding bills. The final 15 percent is provided once a company pays the invoice.

Find More: http://www.pymnts.com/news/b2b-payments/2016/b2b-fintech-venture-capital-satago-apruve/

 

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