We all know about outside cybersecurity threats like hackers and cybercriminals, but what about insider threats?
According to Boston-based security company ObserveIT, over 60 percent of all attacks today are carried out by insiders, resulting in roughly $5 million in total costs for every breach.
That’s why ObserveIT aims to help companies large and small protect themselves from user-based threats — and the startup raised $33 million in funding on Tuesday to do just that.
The Series B round, which included participation from Bain Capital Ventures, Spring Lake Equity Partners and NightDragon Security, will be used to scale ObserveIT’s sales and marketing teams, as well as to accelerate innovation for their insider threat management solutions.
“Whether accidental or malicious, insider threats are increasing in both frequency and cost,” said Mike McKee, CEO of ObserveIT, in a statement. “Our recent momentum is a testament to the market’s need for a holistic cybersecurity solution which swiftly identifies and eliminates these risks — with real-time visibility, detection and prevention.”
ObserveIT helps its customers identify and eliminate threats through its people-focused insider threat management solution, which is built to help companies detect risky behavior, streamline the investigation process and prevent data exfiltration. It does this by analyzing over 300 unique insider threat indicators, with the goal of reducing investigation time from days to minutes.
The recent financing comes on the heels of a big year for ObserveIT: In the past 12 months, the company increased customer deals by 185 percent year over year, while also increasing new customer deal size by more than 250 percent.
ObserveIT also received numerous industry awards in 2018, including being named a gold winner of the 14th Annual 2018 Info Security PG’s Global Excellence Awards within the database security category, and was named in the Boston Business Journal’s list of Best Places to Work in Massachusetts for the second year in a row.
“Insider threats are the greatest threats enterprises face today, and organizations are struggling to protect their most valuable assets,” said Dave DeWalt, founder of NightDragon Security, in a statement. “ObserveIT is well-positioned to tackle these challenges head-on, as it enables organizations to uncover risky user behavior in real time all while preventing data exfiltration.”
Today, more than 1,700 customers are using ObserveIT’s technology, including five of the top 10 financial services companies in the country, three of the top five banking institutions, and two of the top five asset management firms.
The company currently employs 55 people in Boston and is actively hiring for positions in product development, marketing, sales and customer engagement.
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