Leesburg, Va.-based cybersecurity startup PhishMe has raised $42.5 million in a funding round led by Washington, D.C.-based Paladin Capital Group.
PhishMe offers phishing threat management solutions against malware and drive-by attacks. It trains employees to notice and stop so-called spear phishing attacks, usually emails pretending to be from legitimate sources. It's a common way to hack into a database, and may even have been how hackers recently got into the Democratic National Committee. PhishMe is built around the idea of reducing the human error that leaves networks vulnerable to attack.
"We've really evolved into a way to help operationalize the system and cut out noise," PhishMe co-founder Rohyt Belani told DC Inno in an interview. "We're tying the human element in across the board as people learn that these issues can't be solved by technology alone. It's almost like being a doctor. You don't hope for epidemics, but business is good when there is one."
"You don't hope for epidemics, but business is good when there is one."
Paladin has been a long-term investor in PhishMe, leading in both its 2012 $2.5 million and $13 million 2015 round. PhishMe is one of nearly 40 cybersecurity investments that Paladin is involved in.
PhishMe said it plans to use the funding to for research and hiring new developers as well as looking to grow its marketshare in Europe and Asia. The company has reported more than 100 percent growth year-over-year and has around 250 employees in its offices globally.
"The conversation is getting elevated to the board room now," Belani said. "That's a change in the mindset of the buyer that is driving out business forward."
