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“ThreatMetrix has a trusted, compelling cybersecurity solution and extensive market traction that stands 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.”
More than $1.4 billion has been invested in the cybersecurity market in just the 12-month period ending September 2013. That’s a jump of 29 percent over the previous year. And, while many cybersecurity startups are in the early stages of business, ThreatMetrix’s proven business strategy and the ThreatMetrix Digital Identity Network have already put the company in the strongest possible position to protect business and government as well as individuals.
The Network, the world’s largest shared intelligence identity network, enables companies and government agencies to share anonymized information across business boundaries and international borders to deliver comprehensive risk assessment in real time.
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 ThreatMetrix Platform to protect against rapidly evolving cyber threats.”
Taussig advises that the company will use the additional financing to continue its successful global expansion in context-based security and advanced fraud prevention. ThreatMetrix intends to:
• 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 substantially improve the ability to differentiate between trusted and criminal events and keep a step ahead of cybercriminals.
• Enhance frictionless context-based authentication solutions – These solutions enable enterprises to establish trust for each account login based on 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. This number is projected to reach 50 percent by the end of 2014. Recently, ThreatMetrix 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 – In addition to financial service and e-commerce markets, ThreatMetrix will expand into new markets including enterprise security, healthcare, gaming and insurance. Because enterprise security professionals see the importance of incorporating fraud prevention tools in their security plans, 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.