Security Bags $25M Round
July 1, 2020
1 Security has closed $25 million in growth funding led by new
investors, ForgePoint Capital, along with current investors Kleiner
Perkins, Icon Ventures and Top Tier Capital. The company also announced
the appointment of cybersecurity industry leader, Patrick Sweeney, as
CEO. Sweeney comes to Area 1 Security with more than 25 years of
high-tech executive and general management experience. He most recently
served as CEO of Talari Networks (sold to Oracle in 2019) and held
senior executive roles at Dell and SonicWall, where he consistently
drove exceptional growth and financial performance.
The adoption of cloud-based email by companies large and small is now
mainstream. According to Gartner's Email Security Market Guide, more
than 70 percent of corporate email will be cloud-native — principally
Microsoft Office 365 and Google Gmail — by 2021. In a world where the
inbox is in the cloud, the architectures of legacy Secure Email Gateway
(SEG) vendors continue to be challenged and are a vestige of the past,
particularly when it comes to Business Email Compromises and other
targeted threats. Advanced phishing protection, Multi-mode inspection,
Cloud-native scale and integrated prevention, detection and response
have emerged as key criteria for protecting organizations as they
migrate away from traditional Secure Email Gateways to Cloud Email
Security solutions, instead.
"Email security is fundamentally broken, with phishing attacks
consistently breaching defenses, leading to significant business losses
for organizations large and small. The simple fact is that 95 percent of
breaches begin with a phish disguised as an innocuous email," said
Sweeney. "By focusing on the earliest stages of an attack combined with
the industry's leading small pattern analytics technology, Area 1 is
uniquely able to bring preemption to email security. We stop phishing
campaigns prior to their inflicting damage."
In the first half of 2020 alone, Area 1 intercepted and prevented $273
million in active financial cyber fraud perpetrated through
sophisticated Business Email Compromise (BEC) phish. The company also
blocked millions of phish missed by cloud email providers and legacy SEG
defenses, underscoring the enormity of the problem organizations face.
email continues to be the predominant business collaboration
application, innovation in Email Security has stagnated. We've seen
damage from email security failures climb to outrageous heights over the
past few years, with little indication of slowing down," said Alberto
Yepez, co-founder and managing director of ForgePoint Capital. "Area 1's
preemptive approach and a performance-based business model position the
company to lead this rapidly growing market and disrupt legacy
incumbents who have failed their customers time and again."
Yepez, a leading cybersecurity investor and serial entrepreneur, will
also join Area 1's Board of Directors.
Area 1's expanded leadership and financing (which now totals $82.5
million) demonstrates fast-growing demand for its Cloud Email Security
solution led by Fortune 500 customers across financial services,
healthcare, consumer goods, manufacturing, and other industries. The new
financing will continue the company's heavy product R&D investment, and
significantly expand its go-to-market resources with a specific focus on
an aggressive multi-tier channel strategy.