Israeli startup company developing a solution for protecting enterprise SaaS applications, announced the closing of a large round that will be funneled toward increasing R&D in Israel and S&M in the US
Israeli startup Adallom, developer of an SaaS based data protection solution for SaaS enterprise software, announced today the completion of a $15M funding round. The round was led by Index Ventures and Sequoia Capital. Shardul Shah from Index Ventures will be joining Sequoia Capital’s Gili Raanan and Zohar Zisapel on the Adallom board of directors. This is the second financing round of the company following a $4.5M investment by Sequoia and Zisapel in December of 2012.
Beefing up R&D in Israel
Adallom was established in 2011 by Assaf Rappaport, Amit Luttwak and Roy Reznik. The three have a security rich past having served in the 8200, the technology unit of Israel’s Intelligence Corps. Adallom has offices in Ramat HaChayal, Tel Aviv and another branch in Menlo Park, California. The company’s solution focuses on enterprise level organizational security.
“SaaS applications have become very popular and are widely used in organizations, primarily because they’re so convenient,” Reznik, VP of R&D for Adallom told Geektime in a recent interview, “But the biggest problem in terms of organizations is that they have no control over these applications or the traffic that runs through them, mainly because these applications are so accessible in any situation and on any device. In fact, the organizations have lost data security features that have been applied to applications within the organization outside the SaaS use simply by using these third party applications.”
Security for SaaS applications
Rappaport, President and CEO agreed in the past to explain in a few words a little about the product being developed by the company. He noted that this is a unique solution for protecting sensitive information in an organization, factoring into account the various technologies and emerging threats that have appeared in recent years. Because employees are sharing information both inside and outside the organization, with partners and customers, information flows in an uncontrolled manner. Thanks to the technology like Adallom, this information flow can be controlled and directed through a secure channel so that it does not hurt the organization and IT can keep their finger on the pulse of all alerts, leaks and hacks.
Reznik added that Adallom has an extensive network of proxy servers that channel the traffic of the SaaS applications from different organization transparently, without any installation on the client side. The configuration of Adallom is performed on the server side of the app itself. “Installing the solution is done via integration with the Authentication process on the server side. Taking the GMail app, for example; it’s a very convenient solution but the organization is not able to see if someone attacks your username and respond accordingly.”
“With our solution, in the case of one account being hacked, the organization can run Damage Control and see exactly what was stolen while blocking the account to prevent further damage.”
With regards to the question of where the money will be invested, Reznik said, “We plan to increase our research and development efforts inside Israel while simultaneously increasing sales and marketing efforts in the United States, significantly.”