Japan’s SoftBank pumps extra $200 million in US-Israeli startup Cybereason

Japan’s SoftBank pumps extra $200 million in US-Israeli startup Cybereason

New funds bring total amount raised by cybersecurity firm to $400 million; money will go to increase global scope

Illustration of the software developed by Cybereason in action (Courtesy)
Illustration of the software developed by Cybereason in action (Courtesy)

US-Israeli cybersecurity firm Cybereason, which uses behavioral analytics to discover threats, has raised a massive $200 million from Japanese giant SoftBank Corp and its affiliates, bringing the total amount of funds raised by the startup to date to $400 million, the company said Tuesday.

The Boston-based firm uses behavioral analytics and machine learning to process information in real time. The software can tell companies if they are under attack, assesses its impact and move to stop the threat, according to the company’s website.

Over the last two years, Cybereason’s customer base has increased by more than 300 percent, protecting over 6 million points, the company said in a statement. The firm also has offices in Tel Aviv, Tokyo, London, Sydney, Asia-Pacific and continental Europe.

The funds raised will help the firm increase global sales, work with additional partners and  further develop its product offering, including an autonomous security software, the statement said, to help enterprises use artificial intelligence-based technology to detect cybersecurity attacks and rely less on manual work by analysts.

Cybereason founders, left to right, Yonatan Striem-Amit, Lior Div, Yossi Naar (Courtesy)

“We are leading the wave, becoming the world’s most reliable and effective endpoint prevention and detection solution because of our technology, our people and our partners,” Lior Div, CEO and co-founder of Cybereason, said in a statement. “We help all security teams prevent more attacks, sooner, in ways that enable understanding and taking decisive action faster.”

Cybereason will said it will also increase investment in its core R&D and will evaluate acquisition opportunities to expand its operational scope.

Cybereason most recently uncovered Operation SoftCell, a massive hack of several global telecommunications companies involving the theft of vast amounts of personal data, apparently carried out by state-backed actors in China.

SoftBank Corp., a subsidiary of SoftBank Group Corp., is one of Cybereason’s biggest investors and one of its biggest customers. The Japanese firm provides mobile communication, fixed-line communication and internet connection services to customers in Japan. In 2017, SoftBank invested $100 million in Cybereason after investing $59 million in 2015. Other investors in the startup, which was founded in 2012, include CRV, Spark Capital, and Lockheed Martin.

“Cybereason plays a leading role in helping companies manage cybersecurity risks and protect people’s information,” said Marcelo Claure, chief operating officer at SoftBank Group. “AI-driven technology like Cybereason’s is helping secure our increasingly connected world.”

The investment follows the announcements last week of big funding rounds by two other Israeli startups, Lightricks, a maker of photo and video editing apps, which said it raised $135 million last Wednesday, and monday.com, which said on Tuesday last week that it raised $150 million from investors in a bid to boost growth.

Israeli startups in their growth stage are gaining access to larger pools of capital, especially from foreign investors, according to IVC Research Center, which tracks the industry. In the second quarter of this year, startups with initial revenue and revenue growth stages raised $2.02 billion in 70 deals, the highest amount since 2013, IVC said.

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