Israel's Source Defense, the market leader in client-side web security, announced May 19 it has raised $10.5M in Series A+ funding, adding Capital One Ventures as an investor alongside existing investors - JVP, Allegis Cyber, Global Brain and NightDragon who also participated in the round.
The funding emphasizes the growing importance of Source Defense's preventative cyber security technology, allowing for business continuity as online commerce captures center stage for enterprises and government organizations.
Source Defense plans to use the current funding to accelerate growth and enhance its patented VICE Client-side Web Security Platform to align with the growing demand in the market.
The company provides a unique website security solution focused on preventing malicious activity originating in website supply chain vendors. Using its patented technology, based on machine learning and industry best practices, Source Defense provides customers with a fully automated and dynamic solution that controls access and permissions of various dynamic components operating on a website.
"The demand for combining premium online shopping experience with the state-of-the-art security controls has proved an urgent need for our solution" said company CEO Dan Dinnar. "Our success with several Fortune 500 companies, including a most recent deployment at a Fortune 50 company is proof of the value we can provide industry leaders, in view of rampant activity by attackers."
Erel Margalit, JVP founder and chairman, said "Source Defense's innovative solution is becoming much more significant with the surge in cyberattacks since the Corona eruption. We are happy to work again with Dan Dinnar, CEO, who has already demonstrated his excellent management capabilities in key positions at JVP's portfolio companies, CyberArk and HexaTier, the founders and the team. We believe in the high growth potential of Source Defense and its capabilities to create a new global standard to protect websites."
Founded by Hadar Blutrich and Avital Grushcovski, Source Defense has more than tripled its sales in the last 12 months. The company also expanded the Research and Development teams, established strategic channel partnerships, and secured top talent to round out its executive team.
"Over the past year, the rise in formjacking and specifically Magecart attacks have exploded, hurting enterprises globally. These client-side attacks happen undetected and outside the visibility of the typical enterprise web security suite. Attackers have used these techniques to steal massive amounts of customers and transactional data across industries, with particular damage to eCommerce, financial services, healthcare companies, and government agencies" said Dave DeWalt, Managing Director at NightDragon Security.
"Magecart attacks were the most impactful and dominant threat vector of 2019. Source Defense is uniquely positioned as the most effective preventative solution, providing ubiquitous security, improved compliance (primarily related to GDPR, PCI, CCPA, HIPAA), and accelerated website performance," said Yoav Tzruya, General Partner at JVP. "Source Defense's advantage lies in its technology as it fuels rapid growth and wide applicability to various industries and all customer segments."
"It's a vote of confidence in our technology and business plan despite what is going on in the world today," said Dinnar. "Our team is busier than ever and appreciate the continued trust and support of our investors."