Cybersecurity firms CrowdStrike, Cylance complete funding rounds
California-based cybersecurity technology firm CrowdStrike and US security software company Cylance have both completed funding rounds this week, each raising significant financing to accelerate their respective expansion initiatives.
CrowdStrike raised a total $200mn during its Series E round, led by the likes of Accel, General Atlantic, Capital G, and IVP, valuing the firm at over $3bn.
CrowdStrike uses industry-leading AI to process more than 100bn security events on a daily basis in the aim of preventing both known and unknown cyberattacks. The AI engine is able to process more than 2.3mn decisions per second, allowing for enhanced real time threat detection and protection.
“It is clear from CrowdStrike’s explosive growth that they have separated from the pack of next-gen vendors and continue to take market share from the legacy antivirus vendors,” said Sameer Gandhi, Partner at Accel.
“They are the only true SasS platform company in the endpoint security market and we are happy to continue backing the industry leader in this high-growth market.”
Meanwhile, rival company Cylance also held a Series E funding round, raising $120mn, failing to disclose the firm’s valuation in the wake its completion.
Led by Blackstone Tactical Opportunities, the financing acquired from the funding round will allow Cylance to bolster its machine learning-powered predictive endpoint security solution, similarly protecting users from unknown cyberattacks.
“With the most advanced application of AI in endpoint security, Cylance products continuously learn and improve over time, enabling customers to achieve a state of ‘Perpetual Prevention’ and creating a simple silence on the endpoint,” said Cylance CEO, Stuart McClure.
The strong investments secured by both Cylance and CrowdStrike highlight the growing strength of the cybersecurity market - a market that is expected to reach $96bn this year, up 8% from 2017, according to Gartner.
Discord buys Sentropy to fight against hate and abuse online
Discord, a popular chat app, has acquired the software company Sentropy to bolster its efforts to combat online abuse and harassment. Sentropy, monitors online networks for abuse and harassment, then offers users a way to block problematic people and filter out messages they don’t want to see.
First launched in 2015 and currently boasting 150 million monthly active users, Discord plans to integrate Sentropy’s own products into its existing toolkit and the company will also bring the smaller company’s leadership group aboard. Discord currently uses a “multilevel” approach to moderation, and a Trust and Safety (T&S) team dedicated to protecting users and shaping content moderation policies comprised 15% of Discord’s workforce as of May 2020.
“T&S tech and processes should not be used as a competitive advantage,” Sentropy CEO John Redgrave said in a blog post on the announcement. “We all deserve digital and physical safety, and moderators deserve better tooling to help them do one of the hardest jobs online more effectively and with fewer harmful impacts.”
Cleanse platforms of online harassment and abuse
Redgrave elaborated on the company’s natural connection with Discord: “Discord represents the next generation of social companies — a generation where users are not the product to be sold, but the engine of connectivity, creativity, and growth. In this model, user privacy and user safety are essential product features, not an afterthought. The success of this model depends upon building next-generation Trust and Safety into every product. We don’t take this responsibility lightly and are humbled to work at the scale of Discord and with Discord’s resources to increase the depth of our impact.”
Sentropy launched out of stealth last summer with an AI system designed to detect, track and cleanse platforms of online harassment and abuse. The company emerged then with $13 million in funding from notable backers including Reddit co-founder Alexis Ohanian and his VC firm Initialized Capital, King River Capital, Horizons Ventures and Playground Global.
“We are excited to help Discord decide how we can most effectively share with the rest of the Internet the best practices, technology, and tools that we’ve developed to protect our own communities,” Redgrave said.