SpyCloud flying high with $110M investment in defense of passwordless authentication

SpyCloud not only has the advantage of sounding like a cool gadget from the Mission: Impossible movies; it also has a fresh $110 million. In a release, the Austin, Texas-based provider of automated digital identity threat protection announced the growth round commitment of primary and secondary capital, spearheaded by Riverwood Capital.

The series D infusion of dollars will accelerate SpyCloud’s expansion, building on a base of more than 500 existing clients across industries (including, as the release points out, half of the Fortune 10) for protection against bypass attacks as the use of passkeys and passwordless authentication increases.

SpyCloud addresses cybercrime with a non-traditional, according to the release. The tool recaptures identity data from the darknet and other criminal underworlds and remediates it automatically. Ransomware, account takeover, session hijacking, online fraud: all of the top cyber-attack vectors clang uselessly against SpyCloud’s shield of digital justice, the company says.

“As authentication methods improve, businesses need to adjust their defenses to keep up with criminals’ new behavior,” says Ted Ross, the CEO of SpyCloud. “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.”

The firm said the new funding, which follows a $30 million C series round in 2020 that saw the company triple its revenue, would pay to expand its malware database, add integrations, accelerate innovation in enterprise and consumer risk protection, and analyze exposed digital identity and authentication data to extend security beyond device-centric limits.

“Today, a significant majority of cyberattacks use identity-based techniques,” said Jeff Parks, managing partner at Riverwood Capital, which focuses on scaling high-growth tech businesses. “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.”

Texas venture capital firm Silverton Partners, which has invested in SpyCloud since its seed round, is also participating in the new growth funding round.

Article Topics

biometrics  |  cybersecurity  |  fraud prevention  |  funding  |  passwordless authentication  |  SpyCloud