ThreatMetrix Secures $20 Million Series E Financing Company Reveals Aggressive Plans to Expand the Largest Shared Global Identity Network
San Jose, Calif. – March 27, 2014 – ThreatMetrix™, the fastest-growing provider of context-based security and advanced fraud prevention solutions, today announced that it has closed a Series E round of financing. Adams Street Partners led the investment round of $20 million in capital, with all existing ThreatMetrix institutional investors also participating in the investment.
In a 12-month period ending September 2013, investors poured more than $1.4 billion into the cybersecurity market, up 29 percent over the previous year. While many cybersecurity startups are in the early stages of business, ThreatMetrix has a proven business strategy and is uniquely positioned to protect online entities – including businesses, governments and individuals – through the ThreatMetrix™ Global Trust Intelligence Network (The Network). As the world’s largest identity network of shared intelligence, The Network enables companies and government agencies to share anonymized information across business boundaries to deliver the most comprehensive risk assessment in real time.
“ThreatMetrix has a trusted, compelling cybersecurity solution and extensive market traction that stand out compared to other unproven startups in the industry,” said Dave Welsh, Partner, Adams Street Partners. “The cybersecurity industry will only continue to grow in the coming years and ThreatMetrix offers comprehensive technology to protect against evolving risks. Given its already strong base of more than 2,500 customers, we are confident that this financing will position ThreatMetrix for further growth and success across industries and geographies.”
As part of the financing round, Welsh joins the ThreatMetrix board of directors. Welsh is a strategic fit as an investor as he has extensive experience in the cybersecurity industry and formerly served as the chief strategy officer at McAfee, the world’s largest dedicated security company. Adams Street Partners is also an investor in two of ThreatMetrix’s largest investors, USVP and August Capital, and has comprehensive working knowledge of ThreatMetrix and the market opportunity it is addressing.
“Adams Street Partners is an ideal fit to lead our latest round of financing, due to its expertise in the cybersecurity industry and familiarity with our existing investors,” said Reed Taussig, President and CEO, ThreatMetrix. “Today’s cybercriminals are more sophisticated than ever before and include talented, well-funded, international crime rings and nation states. This financing will enable us to expand the depth and breadth of The Network, grow our customer base and continuously build new capabilities into the TrustDefender™ Cybercrime Protection Platform to protect against rapidly evolving cyber threats.”
According to Taussig, the company will use the additional financing to continue its successful global expansion in context-based security and advanced fraud prevention. Specifically, the financing will enable ThreatMetrix to do the following:
· Broaden the reach of The Network, which currently analyzes more than 500 million transactions each month and protects over 160 million active user accounts across 2,500 customers and 10,000 websites. In today’s world, no company can stand alone in the fight against cybercriminals. The Network is a unique differentiator that offers all ThreatMetrix customers worldwide a collective approach to cybersecurity by enabling shared anonymized identity and threat data for real-time analysis of cybercrime risks.
· Build new capabilities in the TrustDefender Cybercrime Protection Platform – ThreatMetrix launched several breakthrough products and technologies in 2013, including ThreatMetrix™ Persona ID, ThreatMetrix™ Trust Tags and the ThreatMetrix™ Global Policy Engine. These capabilities substantially improve the ability to differentiate between trusted and criminal events and stay one step ahead of cybercriminals.
· Enhance its frictionless context-based authentication solutions, which enables enterprises to establish trust for each account login based on fully anonymous user identity, device usage, geolocation, behavior and other factors without compromising user identity or workforce efficiency. “As the bring-your-own-device (BYOD) trend accelerates, Gartner estimates that by year-end 2016, more than 30 percent of enterprises will use contextual authentication for remote workforce access.” [Source: Gartner Magic Quadrant for User Authentication, December, 2013]
· Increase mobile cybersecurity to protect the rising number of mobile transactions across industries. In 2013, mobile represented one-third of all transactions on The Network, and this number is projected to reach 50 percent by the end of 2014. ThreatMetrix recently reinforced its commitment to protect mobile computing by announcing an update that offers jailbreak detection and location-based authentication for mobile transactions.
· Expand into new markets, including enterprise security, healthcare, gaming and insurance in addition to the success it has already experienced in the financial service and e-commerce markets. Enterprise security professionals realize that incorporating fraud prevention tools to protect access to mission critical applications is vital to thwart hackers. During 2014 ThreatMetrix expects to make significant inroads into the traditional enterprise security market.
· Continue its expansion in European and Asian markets in addition to continued growth in North America.
ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real time identity and access analytics that leverage the world’s largest trusted identity network.
ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations, malware, and data breaches. Underpinning the solution is the ThreatMetrix™ Global Trust Intelligence Network, which analyzes over 500 million monthly transactions and protects more than 160 million active user accounts across 2,500 customers and 10,000 websites.
The ThreatMetrix solution is deployed across a variety of industries, including financial services, enterprise, e-commerce, payments, social networks, government and insurance.
For more information, visit www.threatmetrix.com or call 1-408-200-5755.
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