IRONSCALES, an Atlanta email security startup, raised $64 million to expand globally and hire local tech talent.
Why it matters: This funding round represents the increasing interest from the investment community for cybersecurity solutions. The global cybersecurity industry is bringing in record investments — $14 billion in the first three quarters of 2021, according to Crunchbase. That’s on track to double last year’s record of $7.8 billion. That investment growth bodes well for Atlanta, which is known for its strong cybersecurity industry. Some of Atlanta’s early startups were focused on cybersecurity. Internet Security Systems, a cybersecurity company that sold to IBM for $1.3 billion in 2006, was one of the first successful startups and created a network of former employees who launched new security startups.
At a glance: IRONSCALES uses artificial intelligence to power an email security software platform to detect and remedy emailed threats. It also includes a phishing training and simulation modules for employees to learn how to identify cybersecurity threats. The startup, founded in Tel Aviv, Israel, in 2014, has 5,000 customers globally. IRONSCALES CEO Eyal Benishti moved the headquarters to Atlanta because of the city’s quality of life, access to talent and international airport.
What’s next: The company plans to continue its international expansion with this round, focusing mostly on the North American and European markets. IRONSCALES is also gearing up to more than double its employee count. Its Sandy Springs office currently has 20 employees, mostly focused on customer success, sales and marketing. The company has 80 employees worldwide and plans to grow to more than 200, Benishti said. Locally, Benishti is looking for a larger space to accommodate the growth and sees the company moving at the beginning of next year. This round of hiring will focus on research and development, specifically machine learning, data engineering, data science and software development, Benishti said.
Inside the deal: PSG, a Boston-based growth equity firm for software companies, led the round. Existing investors K1 Investment Management and Jump Capital also participated. IRONSCALES previously raised a $15 million Series B in 2019 and an $8 million extension round in 2020.
What they’re saying: “As phishing attempts continue to become more sophisticated, it’s critical for organizations to adopt an agile defense system. We believe IRONSCALES provides a comprehensive, self-learning solution that continuously evolves to effectively protect digital environments,” Benishti said in a statement.
