How could Israeli enSilo have raised such a large A round so quickly? Here are a few explanations
Just three months after raising a $2-3 million seed round, Israeli cybersecurity startup enSilo, which prevents the exfiltration, or taking, of data, announced that it raised a $10 million Series A round led by new investor Lightspeed Venture Partners and with participation from existing investor Carmel Ventures. The funding will be used to accelerate enSilo’s expansion into the North American market, including opening offices on the West Coast.
enSilo targets attackers once they’re already in the system, simply ensuring that they are not able to take information, i.e. exfiltrate data, from the system they have intercepted. They reportedly do this in real-time through their agnostic platform which analyzes communication requests at the operating system level. As Roy Katmor, CEO and Co-Founder of enSilo, explained in a statement, “Time and time again organizations’ networks are infiltrated. We seek to shift the model from trying to block inbound threats to concretely stopping threat actors already on the inside from inflicting damage and stealing valuable data.”
Part of the reason the company focuses on exfiltration rather than infiltration is that it severely decreases the amount of alerts a company receives about attacks, a significant problem in determining whether or not a threat is serious.
Why did enSilo get so much funding so quickly?
One reason they may have been able to raise so much seed and Series A funding so quickly is that they discovered a security hole in all versions of Windows. Microsoft recognized their work and subsequently released a security patch in February, one month before their seed round.
The other explanation is that cybersecurity startups that not only detect attacks, but also prevent them from incurring damage have gained serious venture capital interest this year. This has been in large part due to the increasing number of advanced persistent threat attacks, such as the Sony attack in December.
In March to April alone, almost $200 million of investment supported the funding and acquisition of four Israeli cyber startups in this field: enSilo’s $2-3 million round in March, Skycure‘s $8 million Series A round, PayPal’s approximately $60 million acquisition of CyActive (which had only raised a $2 million seed round prior to the acquisition), and Check Point’s $100 million buyout of Lacoon.
As recently as February, prominent Israeli venture capital firms that specialize in cybersecurity claimed that credible, preventative cyber tech was rare. It seems that the few companies able to create this technology are getting rewarded handsomely by funders, and ultimately, are spurring a new direction in cybersecurity.