Area 1 Security has closed $2.5 million in seed funding. The investors included Ted Schlein of KPCB, Cowboy Ventures, Data Collective, First Round Capital, Allegis Capital, Shape Security CEO Derek Smith and RedSeal Networks CEO Ray Rothrock. Based in Menlo Park, Calif., Area 1 Security is a provider of cyber security solutions.
MENLO PARK, CA — (Marketwired) — 05/05/14 — Area 1 Security, a security startup led by three former NSA leaders, today revealed it raised $2.5 million in seed funding. Area 1 Security is the first to deliver a security solution that eliminates targeted social engineering attacks by focusing on behavioral patterns of delivery systems. The company will use the funds to further develop and scale its threat intelligence product.
Investors in Area 1 Security’s seed round include a range of security heavyweights and enterprise experts including, Ted Schlein, Kleiner Perkins Caufield & Byers; Cowboy Ventures; Data Collective (DCVC); First Round Capital; Allegis Capital; RedSeal Networks CEO and former Venrock partner Ray Rothrock; and Shape Security CEO Derek Smith.
Unlike most security companies that are focused on remediation following a cyber attack, Area 1 Security’s solution uniquely addresses the first phase of targeted attacks that go after users, which currently goes unguarded. Founder and CEO Oren Falkowitz developed a team of former National Security Agency (NSA) officers, who previously focused on the intersection of computer network operations and big data analytics, to give Area 1 Security a unique advantage to deconstruct attacks. The three founders met while working at the NSA and together solved some of the most challenging security and data problems. After the NSA they held various positions at technology companies and gained commercial experience that helped them further identify the need for a threat intelligence system that leverages data gathered from behavioral patterns to prevent future attacks.
“Our team has worked on the cutting edge of data analytics and cyber security, delivering threat intelligence on some of the most sophisticated, targeted and prolific actors,” said Falkowitz. “With this seed round, Area 1 Security will continue to develop and perfect our disruptive technology focused to eliminate targeted, socially engineered cyber attacks.”
As the sensationalism around cyber attacks and data breaches increases, so does the cost of attacks against businesses. The average time to resolve an attack is 32 days, costing an average of $1,035,769 — which translates to $32,469 per day. As a result, executives are losing their jobs and companies are scrambling for proper and effective security solutions. In 2013 alone, the median number of days attackers were present on a victim network before they were discovered was 229 days. And a phishing campaign of only ten messages saw a better than 90 percent chance of getting a click. Attackers are attaining better and faster results at a higher rate than defenders are improving their trade, yet enterprise solutions are regulated to clean up attacks rather than prevent them.
Waiting until an attack has reached its target, and relying on unspecific, untimely, and inaccurate information, enterprises are forced to investigate threats rather than take action limiting defense options. The difference in Area 1 Security’s approach is the focus on strategic campaign behavior rather than tool mechanics to recognize attacks on the horizon. This results in the company receiving highly accurate data, with low false positives, which allows enterprises to efficiently utilize resources and act to prevent the next big attack.
“Area 1 Security’s technology proactively identifies both known and unknown infection vectors before they impact your business,” said Derek Smith, CEO of Shape Security. “Their unique threat intelligence approach gives companies a critical window of opportunity to prevent attacks, potentially saving enterprises millions of dollars. Combining Shape Security’s product to protect web applications with Area 1 Security’s technology to protect employees is a more powerful and complete solution than the industry has ever had.”
About Area 1 Security
Based in Menlo Park, CA, Area 1 Security is developing threat intelligence product focused on eliminating targeted, socially engineered cyber attacks. Area 1 Security was founded by CEO Oren Falkowitz, security experts from NSA and MIT, and data analytics specialists from NSA and Disney. For more information, visit www.area1security.com.