RecoLabs raises $30 million to prevent sensitive data leaks

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RecoLabs, a company that uses AI to map company data exchanges, today announced it has raised $30 million in a Series A round led by Insight Partners, involving Zeev Ventures, BoldStart, Angular Ventures, Jibe Ventures, CrewCapital and Cyber ​​Club London. CEO Ofer Klein said the proceeds will be used to develop the product and support the company’s go-to-market efforts.

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Klein co-founded RecoLabs with Gal Nakash and Tal Shapira in 2020. RecoLabs is Klein’s second venture after Kwik, an IoT platform for “connected customer experience.” Nakash led research at the Israeli Prime Minister’s Office before joining RecoLabs, and Shapira, who also worked at the Prime Minister’s Office, was head of algorithms at Guardian Optical Technologies’ startup for heads-up displays.

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“The distributed workforce is getting bigger. The number of collaboration tools used in a single organization is increasing every day. And each of them presents a new security threat,” Klein told TechCrunch in an email interview. “Information sharing and collaboration across applications is critical to and of unlimited value to businesses, but without the security context and intelligence of what business data and interactions occur in these exchange environments, we see organizations increase their risk.”

RecoLabs monitors communications within and outside the organization to flag potential issues as they arise. For example, if a third-party vendor’s contract has expired but the vendor still has access to confidential documents, or if a file is sent to the wrong account manager, RecoLabs can detect it and flag it for correction, Klein said.

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There are many compliance and data management software available (see: Checks, DataGuard, ketchas well as DataGrail), but Klein claims that RecoLabs’ “contextual” approach sets it apart. The platform creates a “business collaboration map” that ostensibly shows where the incident happened, which parties were involved, and details of remedial actions.

According to Klein, RecoLabs uses an artificial intelligence engine to learn context using metadata in audit logs generated by collaboration, storage, and email tools (such as Slack, Jira, Box, OneDrive, Outlook, etc.). The mechanism does not require manual policy configuration to create a relationship model between organization employees, teams, and external vendors, Klein said, freeing up security teams to focus on more pressing work.

“Our closest competitors are legacy data protection tools that are still focused on content, not context. They require a high level of manual entry and maintenance, create noise and organizational friction, and have no understanding of the context of incidents leading to inaccurate alerts,” Klein said. “[With RecoLabs,] security teams can share incidents and their context with the appropriate team members to get additional feedback to fix the incident, or even give a team member the opportunity to take ownership of the incident and take corrective action on their own.”

Of course AI does mistakes. Unforeseen biases can affect the system’s predictions, causing mistakes. The scale of the problem is evidenced by a 2021 survey conducted by Fastly and ESG. found that nearly half of all cybersecurity alerts from software are false positives.

Be that as it may, Klein stands by his product, stating that RecoLabs “results in the fewest false positives in detecting events and incidents that no other tool can detect.”

“The pandemic has pushed companies to make extensive use of collaboration tools to support their distributed workforce. Companies have started using tools like Slack, Teams and Google Drive with their customers and vendors to speed up business processes,” Klein said. “But these channels are invisible and control over them is limited… RecoLabs is well positioned to lead the next generation of security solutions focused on business growth and significant savings in money and effort.”

Klein declined to list clients for RecoLabs, which employs 35 people, or disclose earnings figures, but said a “multiple” companies in finance, manufacturing, technology and insurance, including Fortune 500 companies, use his product.


Credit: techcrunch.com /

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