Oct
15
2020
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Temporal raises $18.75M for its microservices orchestration platform

Temporal, a Seattle-based startup that is building an open-source, stateful microservices orchestration platform, today announced that it has raised an $18.75 million Series A round led by Sequoia Capital. Existing investors Addition Ventures and Amplify Partners also joined, together with new investor Madrona Venture Group. With this, the company has now raised a total of $25.5 million.

Founded by Maxim Fateev (CEO) and Samar Abbas (CTO), who created the open-source Cadence orchestration engine during their time at Uber, Temporal aims to make it easier for developers and operators to run microservices in production. Current users include the likes of Box and Snap.

“Before microservices, coding applications was much simpler,” Temporal’s Fateev told me. “Resources were always located in the same place — the monolith server with a single DB — which meant developers didn’t have to codify a bunch of guessing about where things were. Microservices, on the other hand, are highly distributed, which means developers need to coordinate changes across a number of servers in different physical locations.”

Those servers could go down at any time, so engineers often spend a lot of time building custom reliability code to make calls to these services. As Fateev argues, that’s table stakes and doesn’t help these developers create something that builds real business value. Temporal gives these developers access to a set of what the team calls “reliability primitives” that handle these use cases. “This means developers spend far more time writing differentiated code for their business and end up with a more reliable application than they could have built themselves,” said Fateev.

Temporal’s target use is virtually any developer who works with microservices — and wants them to be reliable. Because of this, the company’s tool — despite offering a read-only web-based user interface for administering and monitoring the system — isn’t the main focus here. The company also doesn’t have any plans to create a no-code/low-code workflow builder, Fateev tells me. However, since it is open-source, quite a few Temporal users build their own solutions on top of it.

The company itself plans to offer a cloud-based Temporal-as-a-Service offering soon. Interestingly, Fateev tells me that the team isn’t looking at offering enterprise support or licensing in the near future. “After spending a lot of time thinking it over, we decided a hosted offering was best for the open-source community and long-term growth of the business,” he said.

Unsurprisingly, the company plans to use the new funding to improve its existing tool and build out this cloud service, with plans to launch it into general availability next year. At the same time, the team plans to say true to its open-source roots and host events and provide more resources to its community.

“Temporal enables Snapchat to focus on building the business logic of a robust asynchronous API system without requiring a complex state management infrastructure,” said Steven Sun, Snap Tech Lead, Staff Software Engineer. “This has improved the efficiency of launching our services for the Snapchat community.”

Oct
05
2020
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Printing giant Vistaprint acquires 99designs

Vistaprint announced today that its parent company Cimpress has acquired freelance design marketplace 99designs.

The companies say that 99designs will become part of Vistaprint while also operating as a separate brand, with 99designs CEO Patrick Llewelyn continuing to lead his team and reporting to Cimpress/Vistaprint CEO Robert Keane.

The acquisition announcement emphasizes the opportunity of connecting 99designs’ freelance designers with the 20 million small businesses who use Vistaprint to print signs, banners, business cards and other marketing materials — so they can have their design and printing needs handled in one place.

Apparently Vistaprint has already been expanding into design services, with offerings that include a design service that businesses have used to create custom face masks during the pandemic.

“The driving force behind Vistaprint’s future with 99designs is our passion to help small businesses,” Keane said in a statement. “We know how critical great design is for entrepreneurs on their journey. 99designs and Vistaprint have shared values and vision to be a trusted partner to business owners and creators, which lay the foundation for something bigger and more valuable than either of our teams could create alone.”

The financial terms of the acquisition were not disclosed. Cimpress is publicly traded, while 99designs has remained private, despite Llewellyn’s plans to go public a couple of years ago. The design company was founded in 2008 and raised a total of $45 million from Accel and Recruit Strategic Partners.

 

Oct
05
2020
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As it closes in on Arm, Nvidia announces UK supercomputer dedicated to medical research

As Nvidia continues to work through its deal to acquire Arm from SoftBank for $40 billion, the computing giant is making another big move to lay out its commitment to investing in U.K. technology. Today the company announced plans to develop Cambridge-1, a new £40 million AI supercomputer that will be used for research in the health industry in the country, the first supercomputer built by Nvidia specifically for external research access, it said.

Nvidia said it is already working with GSK, AstraZeneca, London hospitals Guy’s and St Thomas’ NHS Foundation Trust, King’s College London and Oxford Nanopore to use the Cambridge-1. The supercomputer is due to come online by the end of the year and will be the company’s second supercomputer in the country. The first is already in development at the company’s AI Center of Excellence in Cambridge, and the plan is to add more supercomputers over time.

The growing role of AI has underscored an interesting crossroads in medical research. On one hand, leading researchers all acknowledge the role it will be playing in their work. On the other, none of them (nor their institutions) have the resources to meet that demand on their own. That’s driving them all to get involved much more deeply with big tech companies like Google, Microsoft and, in this case, Nvidia, to carry out work.

Alongside the supercomputer news, Nvidia is making a second announcement in the area of healthcare in the U.K.: it has inked a partnership with GSK, which has established an AI hub in London, to build AI-based computational processes that will be used in drug vaccine and discovery — an especially timely piece of news, given that we are in a global health pandemic and all drug makers and researchers are on the hunt to understand more about, and build vaccines for, COVID-19.

The news is coinciding with Nvidia’s industry event, the GPU Technology Conference.

“Tackling the world’s most pressing challenges in healthcare requires massively powerful computing resources to harness the capabilities of AI,” said Jensen Huang, founder and CEO of Nvidia, in his keynote at the event. “The Cambridge-1 supercomputer will serve as a hub of innovation for the U.K., and further the groundbreaking work being done by the nation’s researchers in critical healthcare and drug discovery.”

The company plans to dedicate Cambridge-1 resources in four areas, it said: industry research, in particular joint research on projects that exceed the resources of any single institution; university granted compute time; health-focused AI startups; and education for future AI practitioners. It’s already building specific applications in areas, like the drug discovery work it’s doing with GSK, that will be run on the machine.

The Cambridge-1 will be built on Nvidia’s DGX SuperPOD system, which can process 400 petaflops of AI performance and 8 petaflops of Linpack performance. Nvidia said this will rank it as the 29th fastest supercomputer in the world.

“Number 29” doesn’t sound very groundbreaking, but there are other reasons why the announcement is significant.

For starters, it underscores how the supercomputing market — while still not a mass-market enterprise — is increasingly developing more focus around specific areas of research and industries. In this case, it underscores how health research has become more complex, and how applications of artificial intelligence have both spurred that complexity but, in the case of building stronger computing power, also provides a better route — some might say one of the only viable routes in the most complex of cases — to medical breakthroughs and discoveries.

It’s also notable that the effort is being forged in the U.K. Nvidia’s deal to buy Arm has seen some resistance in the market — with one group leading a campaign to stop the sale and take Arm independent — but this latest announcement underscores that the company is already involved pretty deeply in the U.K. market, bolstering Nvidia’s case to double down even further. (Yes, chip reference designs and building supercomputers are different enterprises, but the argument for Nvidia is one of commitment and presence.)

“AI and machine learning are like a new microscope that will help scientists to see things that they couldn’t see otherwise,” said Dr. Hal Barron, chief scientific officer and president, R&D, GSK, in a statement. “NVIDIA’s investment in computing, combined with the power of deep learning, will enable solutions to some of the life sciences industry’s greatest challenges and help us continue to deliver transformational medicines and vaccines to patients. Together with GSK’s new AI lab in London, I am delighted that these advanced technologies will now be available to help the U.K.’s outstanding scientists.”

“The use of big data, supercomputing and artificial intelligence have the potential to transform research and development; from target identification through clinical research and all the way to the launch of new medicines,” added James Weatherall, PhD, head of Data Science and AI, AstraZeneca, in his statement.

“Recent advances in AI have seen increasingly powerful models being used for complex tasks such as image recognition and natural language understanding,” said Sebastien Ourselin, head, School of Biomedical Engineering & Imaging Sciences at King’s College London. “These models have achieved previously unimaginable performance by using an unprecedented scale of computational power, amassing millions of GPU hours per model. Through this partnership, for the first time, such a scale of computational power will be available to healthcare research – it will be truly transformational for patient health and treatment pathways.”

Dr. Ian Abbs, chief executive & chief medical director of Guy’s and St Thomas’ NHS Foundation Trust Officer, said: “If AI is to be deployed at scale for patient care, then accuracy, robustness and safety are of paramount importance. We need to ensure AI researchers have access to the largest and most comprehensive datasets that the NHS has to offer, our clinical expertise, and the required computational infrastructure to make sense of the data. This approach is not only necessary, but also the only ethical way to deliver AI in healthcare – more advanced AI means better care for our patients.”

“Compact AI has enabled real-time sequencing in the palm of your hand, and AI supercomputers are enabling new scientific discoveries in large-scale genomic data sets,” added Gordon Sanghera, CEO, Oxford Nanopore Technologies. “These complementary innovations in data analysis support a wealth of impactful science in the U.K., and critically, support our goal of bringing genomic analysis to anyone, anywhere.”

 

Sep
16
2020
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Pure Storage acquires data service platform Portworx for $370M

Pure Storage, the public enterprise data storage company, today announced that it has acquired Portworx, a well-funded startup that provides a cloud-native storage and data-management platform based on Kubernetes, for $370 million in cash. This marks Pure Storage’s largest acquisition to date and shows how important this market for multicloud data services has become.

Current Portworx enterprise customers include the likes of Carrefour, Comcast, GE Digital, Kroger, Lufthansa, and T-Mobile. At the core of the service is its ability to help users migrate their data and create backups. It creates a storage layer that allows developers to then access that data, no matter where it resides.

Pure Storage will use Portworx’s technology to expand its hybrid and multicloud services and provide Kubernetes -based data services across clouds.

Image Credits: Portworx

“I’m tremendously proud of what we’ve built at Portworx: An unparalleled data services platform for customers running mission-critical applications in hybrid and multicloud environments,” said Portworx CEO Murli Thirumale. “The traction and growth we see in our business daily shows that containers and Kubernetes are fundamental to the next-generation application architecture and thus competitiveness. We are excited for the accelerated growth and customer impact we will be able to achieve as a part of Pure.”

When the company raised its Series C round last year, Thirumale told me that Portworx had expanded its customer base by over 100% and its bookings increased by 376 from 2018 to 2019.

“As forward-thinking enterprises adopt cloud-native strategies to advance their business, we are thrilled to have the Portworx team and their groundbreaking technology joining us at Pure to expand our success in delivering multicloud data services for Kubernetes,” said Charles Giancarlo, chairman and CEO of Pure Storage. “This acquisition marks a significant milestone in expanding our Modern Data Experience to cover traditional and cloud native applications alike.”

Jun
18
2020
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Intercom announces the promotion of Karen Peacock to CEO

Three years ago almost to the day, Intercom announced that it was bringing former Intuit exec Karen Peacock on board as COO. Today, she got promoted to CEO, effective July 1. Current CEO and company co-founder Eoghan McCabe will become Chairman.

As it turns out, these moves aren’t a coincidence. McCabe had been actively thinking about a succession plan when he hired Peacock. “When I first started talking to Eoghan three years ago, he shared with me that his vision was to hire someone as COO, who could then become the CEO at the right time and he could transition into the chairman role,” Peacock told TechCrunch .

She said while the idea was always there, they didn’t feel the need to rush the process. “We were just looking for whatever the right time was, and it wasn’t something we were expected to do in the first year or two. And now is really the right time to transition with all of the momentum that we’re seeing in the market,” she said.

She said as McCabe makes the transition away from running the company he helped found, he will still be around, and they will continue working together on things like product and marketing strategy, but Peacock brings a pedigree of her own to the new role.

Not only has she been in charge of commercial aspects of the Intercom business for the past three years, prior to that she was SVP at Intuit where she ran small business products that included QuickBooks, and grew it from a $500 million business to a hefty $2.5 billion during her tenure.

McCabe says that experience was one of the reasons he spent six months trying to convince Peacock to become COO at Intercom in 2017. “It’s really hard to find a leader that’s as well rounded, and as unique as Karen is. You know she doesn’t actually fit your typical very experienced operator,” he said. He points to her deep product background, calling her a “product nerd,” and her undergraduate degree in applied mathematics from Harvard as examples.

In spite of the pandemic, she’s taking over a company that’s still managing to grow. The company’s business messenger products, which enable companies to chat with customers online, have become increasingly important during the pandemic with many brick-and-mortar businesses shut down and the majority of business is being conducted digitally.

“Our overall revenue is $150 million in annual recurring revenue, and a supporting data point to what we were just talking about is that our new business to up market customers through our sales teams has doubled year over year. So we’re really seeing some quite nice acceleration there,” she said.

Peacock says she wants to continue building the company and using her role to build a diverse and inclusive culture. “I believe that [diversity and inclusion] is not one person’s job, it’s all of our jobs, but we have one person who’s the center post of that (a head of D&I). And then we work with outside consulting firms as well to just try and stay in a place where we understand all of what’s possible and what we can do in the world.”

She adds, “I will say that we need to make more progress on diversity and inclusion. I wouldn’t step back and pat ourselves on the back and say we’ve done this perfectly. There’s a lot more that we need to do, and it’s one of the things that I’m very excited to tackle as CEO.”

According to a February Wall Street Journal article, less than 6% of women hold CEO jobs in the U.S. Peacock certainly sees this and wants to continue to mentor women as she takes over at Intercom. “It is something that I’m very passionate about. I do speak to various different groups of up and coming women leaders, and I mentor a group of women outside of Intercom,” she said. She also sits on the board at Dropbox with other women leaders like Condoleezza Rice and Meg Whitman.

Peacock says that taking over during a pandemic makes it interesting, and instead of visiting the company’s offices, she’ll be doing a lot of video conferences. But neither is she coming in cold to the company having to ramp up on the business side of things, while getting to know everyone.

“I feel very fortunate to have been with Intercom for three years, and so I know all the people and they all know me. And so I think it’s a lot easier to do that virtually than if you’re meeting people for the very first time. Similarly, I also know the business very well, and so it’s not like I’m trying to both ramp up on the business and deal with a pandemic,” she said.

May
20
2020
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Directly, which taps experts to train chatbots, raises $11M, closes out Series B at $51M

Directly, a startup whose mission is to help build better customer service chatbots by using experts in specific areas to train them, has raised more funding as it opens up a new front to grow its business: APIs and a partner ecosystem that can now also tap into its expert network. Today Directly is announcing that it has added $11 million to close out its Series B at $51 million (it raised $20 million back in January of this year, and another $20 million as part of the Series B back in 2018).

The funding is coming from Triangle Peak Partners and Toba Capital, while its previous investors in the round included strategic backers Samsung NEXT and Microsoft’s M12 Ventures (who are both customers, alongside companies like Airbnb), as well as Industry Ventures, True Ventures, Costanoa Ventures and Northgate. (As we reported when covering the initial close, Directly’s valuation at that time was at $110 million post-money, and so this would likely put it at $120 million or higher, given how the business has expanded.)

While chatbots have now been around for years, a key focus in the tech world has been how to help them work better, after initial efforts saw so many disappointing results that it was fair to ask whether they were even worth the trouble.

Directly’s premise is that the most important part of getting a chatbot to work well is to make sure that it’s trained correctly, and its approach to that is very practical: find experts both to troubleshoot questions and provide answers.

As we’ve described before, its platform helps businesses identify and reach out to “experts” in the business or product in question, collect knowledge from them, and then fold that into a company’s AI to help train it and answer questions more accurately. It also looks at data input and output into those AI systems to figure out what is working, and what is not, and how to fix that, too.

The information is typically collected by way of question-and-answer sessions. Directly compensates experts both for submitting information as well as to pay out royalties when their knowledge has been put to use, “just as you would in traditional copyright licensing in music,” its co-founder Antony Brydon explained to me earlier this year.

It can take as little as 100 experts, but potentially many more, to train a system, depending on how much the information needs to be updated over time. (Directly’s work for Xbox, for example, used 1,000 experts but has to date answered millions of questions.)

Directly’s pitch to customers is that building a better chatbot can help deflect more questions from actual live agents (and subsequently cut operational costs for a business). It claims that customer contacts can be reduced by up to 80%, with customer satisfaction by up to 20%, as a result.

What’s interesting is that now Directly sees an opportunity in expanding that expert ecosystem to a wider group of partners, some of which might have previously been seen as competitors. (Not unlike Amazon’s AI powering a multitude of other businesses, some of which might also be in the market of selling the same services that Amazon does).

The partner ecosystem, as Directly calls it, use APIs to link into Directly’s platform. Meya, Percept.ai, and SmartAction — which themselves provide a range of customer service automation tools — are three of the first users.

“The team at Directly have quickly proven to be trusted and invaluable partners,” said Erik Kalviainen, CEO at Meya, in a statement. “As a result of our collaboration, Meya is now able to take advantage of a whole new set of capabilities that will enable us to deliver automated solutions both faster and with higher resolution rates, without customers needing to deploy significant internal resources. That’s a powerful advantage at a time when scale and efficiency are key to any successful customer support operation.”

The prospect of a bigger business funnel beyond even what Directly was pulling in itself is likely what attracted the most recent investment.

“Directly has established itself as a true leader in helping customers thrive during these turbulent economic times,” said Tyler Peterson, Partner at Triangle Peak Partners, in a statement. “There is little doubt that automation will play a tremendous role in the future of customer support, but Directly is realizing that potential today. Their platform enables businesses to strike just the right balance between automation and human support, helping them adopt AI-powered solutions in a way that is practical, accessible, and demonstrably effective.”

In January, Mike de la Cruz, who took over as CEO at the time of the funding announcement, said the company was gearing up for a larger Series C in 2021. It’s not clear how and if that will be impacted by the current state of the world. But in the meantime, as more organizations are looking for ways to connect with customers outside of channels that might require people to physically visit stores, or for employees to sit in call centres, it presents a huge opportunity for companies like this one.

“At its core, our business is about helping customer support leaders resolve customer issues with the right mix of automation and human support,” said de la Cruz in a statement. “It’s one thing to deliver a great product today, but we’re committed to ensuring that our customers have the solutions they need over the long term. That means constantly investing in our platform and expanding our capabilities, so that we can keep up with the rapid pace of technological change and an unpredictable economic landscape. These new partnerships and this latest expansion of our recent funding round have positioned us to do just that. We’re excited to be collaborating with our new partners, and very thankful to all of our investors for their support.”

May
20
2020
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BetterCloud scores $75M Series F as SaaS management needs grow

BetterCloud gives IT visibility into its SaaS tools providing the means to discover, manage and secure those tools. In the middle of a crisis that has forced most companies to move workers home, being able to manage SaaS usage in this way is growing increasingly significant.

Today the company announced a $75 million Series F. Warburg Pincus led the way with participation from existing investors Bain Capital Ventures, Accel, Greycroft Partners, Flybridge Capital Partners, New Amsterdam Growth Capital and e.ventures. Today’s round brings the total raised to $187 million, according to the company.

While CEO David Politis acknowledges the gravity of the current situation, he also recognizes that giving companies a way to manage their SaaS usage is more pertinent than ever. “What has happened in the last two months has been terrible for the world, but in some crazy way it has just made what we do a lot more relevant,” Politis told TechCrunch .

He says the pandemic has really accelerated the market opportunity because of the reliance on cloud services and the services his company provides.

Those services began as an operational layer on top of G Suite. Later it added support for Office 365 and in 2016 it moved to more general SaaS management. It now offers direct integrations into multiple SaaS apps including Box, Dropbox, Salesforce, Zendesk and more. The set of tools in Bettercloud gives IT control over security, configuration, spend optimization and auditability across SaaS applications.

In normal times after a large Series F round, we might be talking about this being the last round before an IPO, but Politis isn’t ready to commit to that just yet, especially in this economy. He does say, however, that he’s in it for the long haul and sees an opportunity to build a long-term, sustainable company.

“The last couple of months I’ve been thinking about this a lot, and when you take a $75 million round at the stage you’re not doing that because you want to sell the business. You’re doing that because you want to build something and build something really special,” he said.

May
18
2020
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GO1, an enterprise learning platform, picks up $40M from Microsoft, Salesforce and more

With a large proportion of knowledge workers doing now doing their jobs from home, the need for tools to help them feel connected to their profession can be as important as tools to, more practically, keep them connected. Today, a company that helps do precisely that is announcing a growth round of funding after seeing engagement on its platform triple in the last month.

GO1.com, an online learning platform focused specifically on professional training courses (both those to enhance a worker’s skills as well as those needed for company compliance training), is today announcing that it has raised $40 million in funding, a Series C that it plans to use to continue expanding its business. The startup was founded in Brisbane, Australia and now has operations also based out of San Francisco — it was part of a Y Combinator cohort back in 2015 — and more specifically, it wants to continue growth in North America, and to continue expanding its partner network.

GO1 not disclosing its valuation but we are asking. It’s worth pointing out that not only has it seen engagement triple in the last month as companies turn to online learning to keep users connected to their professional lives even as they work among children and house pets, noisy neighbours, dirty laundry, sourdough starters, and the rest (and that’s before you count the harrowing health news we are hit with on a regular basis). But even beyond that, longer term GO1 has shown some strong signs that speak of its traction.

It counts the likes of the University of Oxford, Suzuki, Asahi and Thrifty among its 3,000+ customers, with more than 1.5 million users overall able to access over 170,000 courses and other resources provided by some 100 vetted content partners. Overall usage has grown five-fold over the last 12 months. (GO1 works both with in-house learning management systems or provides its own.)

“GO1’s growth over the last couple of months has been unprecedented and the use of online tools for training is now undergoing a structural shift,” said Andrew Barnes, CEO of GO1, in a statement. “It is gratifying to fill an important void right now as workers embrace online solutions. We are inspired about the future that we are building as we expand our platform with new mediums that reach millions of people every day with the content they need.”

The funding is coming from a very strong list of backers: it’s being co-led by Madrona Venture Group and SEEK — the online recruitment and course directory company that has backed a number of edtech startups, including FutureLearn and Coursera — with participation also from Microsoft’s venture arm M12; new backer Salesforce Ventures, the investing arm of the CRM giant; and another previous backer, Our Innovation Fund.

Microsoft is a strategic backer: GO1 integrated with Teams, so now users can access GO1 content directly via Microsoft’s enterprise-facing video and messaging platform.

“GO1 has been critical for business continuity as organizations navigate the remote realities of COVID-19,” said Nagraj Kashyap, Microsoft Corporate Vice President and Global Head of M12, in a statement. “The GO1 integration with Microsoft Teams offers a seamless learning experience at a time when 75 million people are using the application daily. We’re proud to invest in a solution helping keep employees learning and businesses growing through this time.”

Similarly, Salesforce is also coming in as a strategic, integrating this into its own online personal development products and initiatives.

“We are excited about partnering with GO1 as it looks to scale its online content hub globally. While the majority of corporate learning is done in person today, we believe the new digital imperative will see an acceleration in the shift to online learning tools. We believe GO1 fits well into the Trailhead ecosystem and our vision of creating the life-long learner journey,” said Rob Keith, Head of Australia, Salesforce Ventures, in a statement.

Working remotely has raised a whole new set of challenges for organizations, especially those whose employees typically have never before worked for days, weeks and months outside of the office.

Some of these have been challenges of a more basic IT nature: getting secure access to systems on the right kinds of machines and making sure people can communicate in the ways that they need to to get work done.

But others are more nuanced and long-term but actually just as important, such as making sure people remain in a healthy state of mind about work. Education is one way of getting them on the right track: professional development is not only useful for the person to do her or his job better, but it’s a way to motivate people, to focus their minds, and take a rest from their routines, but in a way that still remains relevant to work.

GO1 is absolutely not the only company pursuing this opportunity. Others include Udemy and Coursera, which have both come to enterprise after initially focusing more on traditional education plays. And LinkedIn Learning (which used to be known as Lynda, before LinkedIn acquired it and shifted the branding) was a trailblazer in this space.

For these, enterprise training sits in a different strategic place to GO1, which started out with compliance training and onboarding of employees before gravitating into a much wider set of topics that range from photography and design, through to Java, accounting, and even yoga and mindfulness training and everything in between.

It’s perhaps the directional approach, alongside its success, that have set GO1 apart from the competition and that has attracted the investment, which seems to have come ahead even of the current boost in usage.

“We met GO1 many months before COVID-19 was on the tip of everyone’s tongue and were impressed then with the growth of the platform and the ability of the team to expand their corporate training offering significantly in North America and Europe,” commented S. Somasegar, managing director, Madrona Venture Group, in a statement. “The global pandemic has only increased the need to both provide training and retraining – and also to do it remotely. GO1 is an important link in the chain of recovery.” As part of the funding Somasegar will join the GO1 board of directors.

Notably, GO1 is currently making all COVID-19 related learning resources available for free “to help teams continue to perform and feel supported during this time of disruption and change,” the company said.

May
07
2020
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Dtex, a specialist in insider threat cybersecurity, raises $17.5M

A lot of enterprise cybersecurity efforts focus on malicious hackers that work on behalf of larger organizations, be they criminal groups or state actors — and for good reason, since the majority of incidents these days come from phishing and other malicious techniques that originate outside the enterprise itself.

But there has also been a persistent, and now growing, focus also on “insider threats” — that is, breaches that start from within organizations themselves. And today a startup that specialises in this area is announcing a round of growth funding to expand its reach.

Dtex, which uses machine learning to monitor network activity within the perimeter and around all endpoints to detect unusual patterns or behaviour around passwords, data movement and other network activities, is today announcing that it has raised $17.5 million in funding.

The round is being led by new investor Northgate Capital with Norwest Venture Partners and Four Rivers Group, both previous investors, also participating. Prior to this, the San Jose-based startup had raised $57.5 million, according to data from PitchBook, while CrunchBase puts the total raised at $40 million.

CEO Bahman Mahbod said the startup is not disclosing valuation except to say that it’s “very excited” about it.

For some context, the company works with hundreds of large enterprises, primarily in the financial, critical infrastructure, government and defence sectors. The plan is to now extend further into newer verticals where it’s started to see more activity more recently: pharmaceuticals, life sciences and manufacturing. Dtex says that over the past 12 months, 80% of its top customers have been increasing their level of engagement with the startup.

Dtex’s focus on “insider” threats sounds slightly sinister at first. Is the implication here that people are more dishonest and nefarious these days and thus need to be policed and monitored much more closely for wrongdoing? The answer is no. There are no more dishonest people today than there ever have been, but there are a lot more opportunities to make mistakes that result in security breaches.

The working world has been on a long-term trend of becoming increasingly digitised in all of its interactions, and bringing on a lot more devices onto those networks. Across both “knowledge” and front-line workers, we now have a vastly larger number of devices being used to help workers do their jobs or just keep in touch with the company as they work, with many of them being brought by the workers themselves rather than being provisioned by the companies. There has also been a huge increase in cloud services,

And in the realm of “knowledge” workers, we’re seeing a lot more remote or peripatetic working, where people don’t have fixed desks and often work outside the office altogether — something that has skyrocketed in recent times with stay-at-home orders put in place to mitigate the spread of COVID-19 cases.

All of this translates into a much wider threat “horizon” within organizations themselves, before even considering the sophistication of external malicious hackers.

And the current state of business has exacerbated that. Mahbod tells us that Dtex is currently seeing spikes in unusual activity from the rise in home workers, who sometimes circumvent VPNs and other security controls, thus committing policy violations; as well as more problems arising from the fact that home networks have been compromised and that is leaving work networks, accessed from home, more vulnerable. These started, he said, with COVID-19 phishing attacks but have progressed to undetected malware from drive-by downloads.

And, inevitably, he added that there has been a rise in intentional data theft and accidental loss arising in cases where organizations have had to lay people off or run a round of furloughs, but might still result from negligence rather than intentional actions.

There are a number of other cybersecurity companies that provide ways to detect insider threats — they include CloudKnox and Obsidian Security, along with a number of larger and established vendors. But Mabhod says that Dtex “is the only company with ‘next-generation’ capabilities that are cloud-first, AI/ML baked-in, and enterprise scalable to millions of users and devices, which it sells as DMAP+.

“Effectively, Next-Gen Insider Threat solutions must replace legacy Insider Threat point solutions which were borne out of the UAM, DLP and UEBA spaces,” he said.

Those providing legacy approaches of that kind include Forcepoint with its SureView product and Proofpoint with its ObserveIT product. Interestingly, CyberX, which is currently in the process of getting acquired by Microsoft (according to reports and also our sources), also includes insider threats in its services.

This is one reason why investors have been interested.

“Dtex has built a highly scalable platform that utilizes a cloud-first, lightweight endpoint architecture, offering clients a number of use cases including insider threat prevention and business operations intelligence,” said Thorsten Claus, partner, Northgate Capital, in a statement. Northgate has a long list of enterprise startups in its portfolio that represent potential customers but also a track record of experience in assessing the problem at hand and building products to address it. “With Dtex, we have found a fast-growing, long-term, investible operation that is not just a band-aid collection of tools, which would be short-lived and replaced.”

Apr
28
2020
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Checkly raises $2.25M seed round for its monitoring and testing platform

Checkly, a Berlin-based startup that is developing a monitoring and testing platform for DevOps teams, today announced that it has raised a $2.25 million seed round led by Accel. A number of angel investors, including Instana CEO Mirko Novakovic, Zeit CEO Guillermo Rauch and former Twilio CTO Ott Kaukver, also participated in this round.

The company’s SaaS platform allows developers to monitor their API endpoints and web apps — and it obviously alerts you when something goes awry. The transaction monitoring tool makes it easy to regularly test interactions with front-end websites without having to actually write any code. The test software is based on Google’s open-source Puppeteer framework and to build its commercial platform, Checkly also developed Puppeteer Recorder for creating these end-to-end testing scripts in a low-code tool that developers access through a Chrome extension.

The team believes that it’s the combination of end-to-end testing and active monitoring, as well as its focus on modern DevOps teams, that makes Checkly stand out in what is already a pretty crowded market for monitoring tools.

“As a customer in the monitoring market, I thought it had long been stuck in the 90s and I needed a tool that could support teams in JavaScript and work for all the different roles within a DevOps team. I set out to build it, quickly realizing that testing was equally important to address,” said Tim Nolet, who founded the company in 2018. “At Checkly, we’ve created a market-defining tool that our customers have been demanding, and we’ve already seen strong traction through word of mouth. We’re delighted to partner with Accel on building out our vision to become the active reliability platform for DevOps teams.”

Nolet’s co-founders are Hannes Lenke, who founded TestObject (which was later acquired by Sauce Labs), and Timo Euteneuer, who was previously Director Sales EMEA at Sauce Labs.

Tthe company says that it currently has about 125 paying customers who run about 1 million checks per day on its platform. Pricing for its services starts at $7 per month for individual developers, with plans for small teams starting at $29 per month.

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