Two Cybersecurity Startups Land Early-Stage Funding for Insurance, Identity Platform
Elpha Secure Technology, a cybersecurity insurer sporting a proprietary software platform, has landed $20 million in Series A funding.
The company plans to use the money to flesh out its software offering, drive business growth across broker networks and boost sales to its core constituency of small and medium-sized businesses (SMBs). (On a related note, check out our MSSP M&A list for the year to date).
Canapi Ventures, a venture capital firm investing in early to growth-stage fintech companies, led the round with participation from Elpha Secure’s existing investors, including Stone Point Ventures, AXIS Capital, State Farm Ventures, The Hartford STAG Ventures, Fermat Capital Management, and EOS Venture Partners.
Gaining Ground Through Cyber Insurance
Elpha positions itself as offering a unique solution that marries cybersecurity technology with cybersecurity insurance policies, as differentiated from the conventional technology insurer that focuses on limiting coverage or raising rates. According to Elpha, insurance customers gain enhanced coverage with a single software installation that brings greater cyber protection through security controls.
To detect anomalies and advise specific actions, these controls include encrypted data backups, multi-factor authentication for remote desktop connections, software version control and machine learning. In addition, Elpha offers a dedicated portal to streamline the quoting, binding and renewal process.
Elpha’s cyber insurance product is backed by two industry-leading insurance carriers, AXIS Surplus Insurance Company and Everest Indemnity Insurance Company.
Oort Advances On Identity Protection
Oort, an identity-centric enterprise security platform, announced that it has completed a $15 million funding round, including both Seed and Series A investments.
Company officials said the money will be used to grow and further accelerate its go-to-market strategy. The funding round was co-led by .406 Ventures and Energy Impact Partners and included Cisco Investments. Existing investors including 645 Ventures, Bain Capital Ventures and First Star Ventures.
Oort describes its mission as helping its customers adopt an identity-first approach to enterprise security, starting with Identity Threat Detection and Response (ITDR).
Oort founder and chief executive Matt Caulfield explained Oort’s mission ahead:
“Every high-profile security breach of 2022 comes down to one thing, and that’s identity. The modern workforce is changing, and we need to change with it. Oort is on a mission to help our customers adopt an identity-first approach to enterprise security, starting with Identity Threat Detection and Response.”
Prior to Oort, Caulfield led the Boston Innovation Team at Cisco. Didi Dotan, Oort’s chief technology officer, served as head of SecureX Sign On, chief architect of Cisco Defense Orchestrator at Cisco, and was previously chief architect of Identity at RSA.