Cybersecurity companies to watch

In canvassing the security industry, CBInsights came up with a list of startups with early-to mid-stage high-momentum that have pioneering technology with the potential to transform cybersecurity. They split the companies into the following categories: Quantum Encryption, Predictive Intelligence, Deception Security, Autonomous Systems, IoT Security, Mobile Security, Automobile Security, Critical Infrastructure Security, and Cyber Insurance.

CB Insights created a Company Mosaic, which uses data to track private company health, using signals including recency of financing, total raised, and investor quality. We’ve gathered this data via our machine learning technology (dubbed The Cruncher) as well as via several thousand direct submissions from firms and  individual professionals.

Quantum encryption

The science of exploiting quantum mechanics for cryptography. The best known type of quantum encryption is quantum key distribution (QKD). QKD uses quantum mechanics to secure communications by enabling two parties to produce a shared random secret key known only to them, which can then be used to encrypt and decrypt messages. 

QuintessenceLabs: is developing a commercially available quantum key distribution (QKD) product. qOptica, the company’s second generation QKD uses quantum physics to provide a secure key exchange for encrypting digital communications. 

Total Funding: $1.1M Select Investors: Westpac Group, Department of Defense –Australia

ID Quantique: provides multi-protocol network encryption solutions based on conventional and quantum technologies. The company’s Cerberis QKD server enables a key exchange that in theory can thwart attacks from quantum computers that could render non-quantum forms of encryption obsolete. 

Total Funding: $9.6M Select Investors: SK Telecom, Qwave

Post-Quantum: offers quorum technology, biometric authentication, and algorithmically encrypted messaging to protect enterprises’ data and communications systems from advanced forms of codebreaking by both quantum and supercomputers. 

Total Funding: $10.4M Select Investors: AM Partners, VMS Investment Group, Barclays Accelerator

Predictive analytics

These startups offer products that are capable of parsing various data feeds about cyber activity in-the-wild as well as behavioral data inside an organization’s network and come up with actionable information to help analysts thwart impending attacks.

4iQ: integrates internal and external intelligence sources like the visible web, social media, and Deep and Dark web intelligence to help organizations anticipate cyber-threats. 

Total Funding: $14M Select Investors:  Trident Capital Cybersecurity, Telefonica Ventures, Benhamou Global Ventures, Adara Venture Partners   

Fortscale Security: provides organizations with a platform combining predictive, big data analytics and machine learning to give real-time visibility into the actions of users and entities across systems and networks and uncovers insider threats by identifying unusual behaviors that pose a risk.

Total Funding: $23M Select Investors: Intel Capital, UST Global, CME Ventures, Swarth Group, Blumberg Capital

Anomali: correlates threat indicators, real time network activity logs, and forensic log data to detect and identify attackers in an organization’s network.

Total Funding: $56M Select Investors: Google Ventures, General Catalyst Partners, In-Q-Tel

SentinelOne: offers a predictive execution inspection engine that combines attack pattern and malware technique modeling with crowd-sourced security intelligence. The company uses predictive execution modeling to detect and protect devices against targeted, zero day threats in real time.

Total Funding: $109.5M Select Investors: Data Collective, Redpoint Ventures, Westly Group, ITOCHU Technology Ventures, Sound 

Deception security

Startups offering cybersecurity systems that deploy decoy-assets in a network as bait for attackers, to identify, track, and disrupt security threats such as advanced automated malware attacks before they do damage. 

Acalvio Technologies: provides advanced threat defense solutions to detect, engage, and respond to malicious activity inside the security perimeter. The solutions are anchored on patented innovations in deception security and data science. 

Total Funding: Undisclosed Select Investors: Google Ventures, Splunk, Accel Partners, Ignition Partners, Eileses Capital

TrapX 360: The TrapX 360 platform captures malware in its virtualized sensor network of honeypots and traps, before the malware can inflict damage.

Total Funding: $19M Select Investors: Opus Capital, Intel Capital, BRM Group, Liberty Media Corporation, Strategic Cyber Ventures

Illusive Networks: provides solutions that combat Advanced Persistent Threats (APT) by exploiting the weakest link of any cyber attack: the human team behind it. The company offers a platform that deceives attackers by planting false information about a network’s resources to flag and stop threats. 

Total Funding: $30M Select Investors: New Enterprise Associates, Bessemer Venture Partners, Microsoft Ventures

Autonomous Systems

Software that utilizes advanced algorithms to efficiently and instantaneously respond to security threats, either free-of or in-tandem with human analysts. 

Sift Science: offers machine learning software that automatically learns the signals of a threat and detects fraudulent behavioral patterns, alerting businesses before they or their customers are defrauded.

Total Funding: $53.5M Select Investors: First Round Capital, Union Square Ventures, Spark Capital

PhishMe: a provider of threat management for organizations concerned about spear phishing, malware, and drive-by threats. PhishMe Triage is a phishing-specific incident response platform that allows analysts to automate the prioritization, analysis, and response to phishing threats.

Total Funding: $58M Select Investors: Bessemer Venture Partners, Paladin Capital Group, Aldrich Capital Partners

ProtectWise: provides network security with its Cloud Network DVR, a virtual camera in the cloud that records everything on the network. The company’s cloud-based software can detect threats in real time and automatically replay stored data to discover previously unknown threats. 

Total Funding: $62.1M Select Investors: Trinity Ventures, Crosslink Capital, Arsenal Venture Partners

Exabeam: Exabeam’s user behavior analytics solution leverages existing log data to quickly detect advanced attacks, prioritize incidents, and guide effective responses.

Total Funding: $65M Select Investors:  Norwest Venture Partners, Icon Ventures, Aspect Ventures

Darktrace: a provider in intelligence-led Behavioral Cyber Defense that uses advanced mathematics to automatically detect abnormal behavior in organizations in order to manage risks from cyber-attacks across all network types, from physical, virtualized, and cloud, through to IoT and industrial control systems.

Total Funding: $107.3M Select Investors: Invoke Capital, Talis Capital, Summit Partners, SoftBank Group, Samsung Ventures

IoT Security

Startups that offer products and services to authenticate IoT devices and encrypt data transmitted throughout IoT systems and industrial internet 

Biowatch: offers a wearable biometric recognition system for secure authentication, mobile payment protection, and smart device interaction. It uses the unique pattern of the user’s wrist-veins to provide a secure bio-authenticator for unlocking a device or machine, accessing a secure internet gateway, and more.

Total Funding: $2.13M Select Investors: MassChallenge, SICPA, AGIRE, Foundation for Technological Innovation

Rubicon Labs: develops symmetric cryptography, digital fingerprints, and a cloud based identity service for securing the IoT, and more.

Total Funding: $18.4M Select Investors: Pelion Venture Partners, Akamai Technologies, Third Point

Auth0: offers a platform for authentication and authorization to implement identity solutions for IoT devices, and more.

Total Funding: $24.2M Select Investors: Bessemer Venture Partners, K9 Ventures, Portland Seed Fund, Silicon Valley Bank, Trinity Ventures

Mobile security

These startups help ensure the privacy, reliability, and accessibility of the information that a mobile device accesses, stores, and processes.

Appthority: provides a cloud-based platform that identifies and grades risky behavior in mobile apps including known and unknown malware, corporate data exfiltration, and intellectual property exposure. The company’s mobile security solutions are built for the needs of enterprise security and mobility teams.

Total Funding: $23.3M Select Investors: Venrock, US Venture Partners, Trident Capital Cybersecurity, Bluecoat Systems

Zimperium: uses behavior-based analytics that continuously protect mobile devices against Wi-Fi, cellular, and host-based threats. Much like a doctor can diagnose an illness by analyzing the symptoms your body is exhibiting, zIPS can detect both known and unknown threats by analyzing the behavior of your mobile device.

Total Funding: $60.3M Select Investors: Telstra Ventures, Sierra Ventures, Samsung Ventures, SoftBank Group, TOYO

Skycure: Skycure’s risk-based mobile security approach is designed from the ground up to defend against all threats that put business data at risk of exposure, theft, and manipulation. Skycure’s technology leverages massive crowd knowledge to proactively identify threats and secure mobile devices.

Total Funding: $27.5M Select Investors: Pitango Venture Capital, New York Life Insurance Company, Shasta Ventures, Foundation Capital

Automotive security

These startups aim to protect autonomous and connected vehicles from malicious cyber attacks.

Trillium: protects mission critical automotive and IoT networks from malicious cyber attack including intrusive manipulation and passive monitoring or eavesdropping.

Total Funding: Undisclosed Select Investors: Global Brain Corporation, DBJ Capital, Mizuho Capital

Karamba Security: protects a car’s externally connected components, identifying attack attempts and blocking exploits from infiltrating the car’s network.

Total Funding: $5M Select Investors: YL Ventures, GlenRock Israel, Fontinalis Partners

Argus Cyber Security: protects private and commercial vehicles, fleets, connectivity platforms and dealerships from cyber attacks.

Total Funding: $30M Select Investors: Vertex Venture Capital, Magma Venture Partners, Allianz Ventures, SBI Group, Startup Autobahn

Critical infrastructure security

Startups offering cybersecurity for critical infrastructure networks, especially industrial control systems (ICS) for which disruption could cause a debilitating impact on economic security, public health, or safety.

Nozomi Networks: builds models of industrial networks and uses behavioral analytics and continuous monitoring to detect changes to baseline states. The result is real-time insight into ICS networks, devices and process status, and the ability to rapidly identify and remediate cyberattacks and process anomalies.

Total Funding: $7.5M Select Investors: Planven Investments, Lux Capital, GCV Capital

CyberX: can detect abnormal behavior on an industrial internet network by analyzing the operational behavior of the network using machine learning technology, and combine that network understanding with proprietary ICS threat intelligence to detect and mitigate risks from cyber attacks.

Total Funding: $11M Select Investors: UpWest Labs, Swarth Group, Glilot Capital Partners, GlenRock Israel, Flint Capital, ff Venture Capital

Indegy: provides real-time situational awareness, visibility and security for ICS used across critical infrastructure. 

Total Funding: $18M Select Investors: Aspect Ventures, Magma Venture Partners, SBI Group, Vertex Ventures

Cyber insurance

Startups offering products and services for insurance companies to better quantify cyber risk and negotiate premiums.

UpGuard: offers CSTAR, a cybersecurity preparedness score for enterprises. The score allows businesses to understand the risk of breaches and unplanned outages. It also offers insurance carriers a new standard by which to effectively assess client risk and compliance profiles.

Total Funding: $27.4M Select Investors: Valar Ventures, Square Peg Capital, Insurance Australia Group, 500 Startups

Cyence: empowers the insurance industry to understand the impact of cyber risk in the context of dollars and probabilities.

Total Funding: $40M Select Investors: Institutional Venture Partners, New Enterprise Associates

BitSight Technologies: offers cyber security ratings to help organizations manage third party risk, benchmark performance, and negotiate cyber insurance premiums.

Total Funding: $87M Select Investors: Comcast Ventures, Flybridge Capital Partners, GGV Capital, Globespan Capital Partners, Liberty Global Ventures, SingTel Innov8

Any other companies we should be watching? Let us know on our Facebook page.