Spin Technology, a data protection software vendor for enterprise customers, today announced that it has raised $16 million in Series A funding led by Blueprint Equity, with participation from Santa Barbara Venture Partners and Blu Venture Investors. CEO Dmitry Dontov said his $55 million new capital at Spin’s valuation will support growth, expand Spin’s software-as-a-service (SaaS) offering, and invest in startup marketing, sales, and engineering. He said he will be brought in to grow the team.
Most companies leverage third-party apps to extend their cloud SaaS environments. In fact, according to Okta, companies now use an average of 89 of his SaaS apps, up 24% from 2016. But while these apps typically help offload the work done by internal teams, they can expose your organization to attack. For example, third-party apps may ship with incorrectly configured guest account features, integrations, and connectivity, leading to data breaches.
To tackle this problem, Dontov co-founded Palo Alto-based Spin in 2017. A three-time entrepreneur, Dontov says he was inspired to develop a platform that uses AI to detect “shadow IT” activity in cloud he SaaS environments.
Image credit: spin technology
Spin acts like a kind of enhanced antivirus program, scanning SaaS apps using algorithms and databases of malicious apps and browser extensions. According to Dontov, the platform will detect ransomware across platforms like Google Workspace, Microsoft Office 365 and Salesforce, perform automated risk assessments and backups, and allow users to create policies to dictate access management.
To date, Spin, which claims to have over 1,600 customers, has raised $18 million in venture capital. The startup’s success can be partially attributed to strong investor interest in the cybersecurity sector. This interest has proven strong against macroeconomic headwinds (so far). Cybersecurity VC funding soared to a record $11.5 billion for him in 2021, reaching $12.5 billion in the first half of 2022.
That’s not surprising. After all, the demand for cybersecurity products remains high. As my colleague Carly Page writes, ransomware attacks were responsible for an estimated 2.9 million attacks from January 2021 to August 2021, while supplies targeting SolarWinds and Kaseye chain attacks increased fourfold in 2020. The European Union’s cybersecurity agency, ENISA, recently stated that traditional cybersecurity protections are no longer effective in defending against these types of attacks.
Gartner estimates that businesses will spend $172 billion on IT security. 2022.
Blueprint Equity’s Sheldon Lewis said in a statement: Contributed to TechCrunch. “Spin provides users of his SaaS productivity apps with maximum ease-of-use, enterprise-grade security and backup without the hassle of managing complex security protocols, worrying about defending against ransomware, or the cost. We have created a solution for data storage.”
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