SpyCloud closes $21m Series B to support product and team expansion

SpyCloud, a company specialising in account takeover prevention services, has bagged $21m in Series B funding.

The capital injection was led by Microsoft’s venture capital fund M12. Other backers to the round include first-time backer Altos Ventures, and previous investors of SpyCloud Silverton Partners and March Capital Partners.

With these new funds, the company will further the expansion of its security research team and its database of ‘uniquely’ recovered assets. Alongside this, SpyCloud is hoping to increase product development and R&D, boost its sales and marketing efforts, and grow the global footprint of the company.

SpyCloud helps prevent account takeovers by identifying exposed employee and customer accounts or passwords as early as possible, and alerting companies to remediate this. The company’s security researchers use intelligence gathering techniques and tools to build a database of exposed credentials and personally identifiable information.

Last year, the platform analysed nearly 3.5 billion sets of online credentials from around 3,000 data breaches.

Companies can implement SpyCloud to automatically block access to breached business accounts to stop hackers accessing sensitive information or assets. The platform can also be used to empower fraud investigations, providing ways to monitor and track tactics, techniques and procedures used for fraud.

SpyCloud CEO and co-founder Ted Ross said, “Passwords and their reuse across personal and work accounts are the leading cause of ATO, one of the most imminent threats to businesses of all sizes.

As criminals use more complex, scalable methods to collect and weaponize compromised passwords, organizations need to take proactive measures to prevent, detect and remediate exposures. SpyCloud meets that immediate need.”

This round has put SpyCloud’s total funding efforts to $28.5m, having previously closed a $5m Series last year, and a $2.5m seed in the year before.