Local cybersecurity startup Enveil has raised a $25 million round with the goal of expanding sales, product development and marketing of its data encryption technology amid a revenue surge over the past two years.
The Series B funding round was led by USAA along with a number of existing investors including Mastercard, Capital One Ventures, C5 Capital, DataTribe, In-Q-Tel, Cyber Mentor Fund, Bloomberg Beta, GC&H and 1843 Capital. The raise comes a little more than two years after Enveil raised a $10 million Series A round and during that time, revenue has increased by more than 300%, the company said in a release Wednesday. The round brings Fulton-based Enveil's total funding to date to more than $40 million.
Enveil was founded in summer 2016 to address a cybersecurity "blind spot," using technology initially spearheaded inside the National Security Agency. The company's tech is aimed at protecting and encrypting data while it is being used as well, as opposed to just sitting at rest on a server. Founder and CEO Ellison Anne Williams spent 12 years at the NSA before founding Enveil and the company is also a graduate of DataTribe, a local cyber incubator concept that aims to commercialize ideas coming out of the intelligence community.
The startup's current customer base includes companies in the financial services, health care and government sectors. Enveil says its technology is more vital than ever, citing data from tech research and consulting firm Gartner that notes 60% of large organizations will use "privacy-enhancing computation techniques" to protect privacy in untrusted environments or for analytics purposes by 2025. The new funding will allow Enveil to capitalize on this growing need and expand its customer base in both the commercial and government sectors, the company said in the release.
“Data is the backbone of the digital economy, but the market is experiencing a crisis of trust that restricts the ways in which data can be used,” said Nathan McKinley, vice president of USAA corporate development in a statement. “Enveil’s ZeroReveal solutions are changing the data usage landscape by enabling sensitive business and mission functions at scale today, and we’re excited to help push those efforts forward through this investment.”
The Series B round from Enveil is one of the largest raises so far this year for startups based in Greater Baltimore. The region — and the country as a whole — got off to a slow start this year when it came to venture capital. While Baltimore-based Facet Wealth raised a $100 million round in January, no other Greater Baltimore startup has raised more than $20 million so far in 2022.
