Phantom Security, which its founders describe as an “application security” company, came out of hiding today with $15 million in co-funding from 468 Capital, DNX Ventures and Munich Re Ventures at a $50 million valuation. CEO Greg Martin said the capital will go towards expanding the team, building the Ghost product, and launching pilot projects with potential customers.
Applications and APIs are at the heart of organizations. Ultimately, they are the ones who provide important information to employees and customers. But increasingly, applications and APIs are becoming attack vectors. Salt Security – which honestly sells an API protection product – estimates that the use of “malicious” API grew by 681% from December 2020 to December 2021. As for applications, cybercriminals most often used them to hack mobile devices, according to Pradeo Labs research.
Martin claims that Ghost is taking a “data science” approach to security to solve problems that other vendors can’t. Keeping the details high and mostly secret – the Ghost product is not yet launched – he said the company’s technology provides transparency and risk protection for applications and their dependencies, including services and APIs, in both cloud and on-premises environments. .
“As an industry, we are still seeing a lot of outdated thinking about how to deal with the sprawl of applications, data, and microservices that has led to widespread cloud adoption,” Martin said in a press release. “Existing approaches and solutions for application security are outdated and losing their effectiveness. With Ghost, we’re completely reimagining how we protect modern applications from the ground up.”
These battle words are for a pre-production company. But Martin emphasizes that the co-founders of Ghost have significant experience in cybersecurity. Josh Larsen, CTO, was a technical manager at Symantec before joining Check Point as an account manager and co-founder of the Blackfin Security Group, which Symantec acquired in 2015. Eric Cornelius, Director of Products, was Deputy Director of the US Department of the Interior. Security Management Systems Program and Chief Product Architect at BlackBerry.
Talent is only part of the equation, and Ghost faces a lot of competition right outside the gate. Above Salt Security raised tens of millions of dollars for its API protection technology from malicious use. No nameanother company looking to address API security issues hit a $1 billion valuation after raising $135 million in Series C last December. Tracked AI, 42crunchas well as Subsequence offer comprehensive API security services, and on the application security side, there are providers such as Astrix Security as well as Enso Security.
That doesn’t bother Hiro Rio Maeda, managing partner at DNX Ventures and an investor in Ghost. To be clear, this is a meaningful investment, given that venture capital investment in cybersecurity startups has fallen 35.8% this quarter compared to the previous quarter. according to Pitchbook data.
“The surge in adoption of applications, APIs and microservices represents great growth potential for businesses, but also creates many new attack surfaces,” Maeda said in a statement. “A better approach is needed to protect these assets, and Ghost is well positioned to address this issue.”
Credit: techcrunch.com /