23 Aug 2023

SpyCloud Raises $110 Million Growth Round Led by Riverwood Capital to Accelerate Identity Threat Protection


SpyCloud provides businesses with automated prevention of the top attack vectors used by sophisticated criminals, preventing the most costly targeted attacks. This growth round will drive further global expansion and accelerate authentication bypass prevention to protect digital identities as passkeys and passwordless authentication adoption grows.

AUSTIN, Texas–(BUSINESS WIRE)–SpyCloud, the leader in operationalizing identity analytics to automate the protection of digital identities, today announced it has closed a $110 million growth round commitment of primary and secondary capital led by Riverwood Capital, a global investor in high-growth technology companies. More than 500 market leaders across every industry – including half of the Fortune 10 – already use SpyCloud to thwart cybercrimes including ransomware, account takeover, session hijacking, and online fraud.

Capitalizing on its proprietary engine that recaptures and analyzes data from the criminal underground and automates the remediation of exposed authentication and identity data, SpyCloud takes a novel approach to disrupting cybercrime compared to traditional methods like threat intelligence, and adds value to IAM, identity threat detection and response, endpoint protection, and zero trust frameworks.

SpyCloud’s platform identifies and remediates stolen employee and consumer session cookies, credentials, and emerging forms of authentication data being actively used by criminals to target enterprises, their customers, and their supply chains. Its latest solution, SpyCloud Compass, enables Post-Infection Remediation of malware exposures, including the compromised assets most likely to lead to ransomware attacks.

With this funding, SpyCloud plans to:

  • Accelerate innovations across Enterprise Protection, Consumer Risk Protection, and Investigations use cases
  • Release authentication bypass prevention solutions that protect businesses and consumers from compromised passkeys
  • Grow its industry-leading database of recaptured malware assets, delivering new insights to help customers and partners stay ahead of the most advanced cyber threats
  • Evolve analytic capabilities that link exposures of personal and corporate identity and authentication data to promote an identity-centric view of security that goes beyond the device-centric limits of most corporate security teams
  • Bolster its growing list of integrations, which already includes Active Directory, Okta, and Tines, among others – partnering with leading identity, incident response, orchestration, and directory services tools
  • Expand its go-to-market teams globally to help organizations adapt to the heightened interest in identity protection

“For the last seven years, we have proven that reacting quickly to identity and authentication exposures is the crucial factor in stopping the cycle of cybercrime,” said Ted Ross, SpyCloud CEO and Co-Founder. “As authentication methods improve, businesses need to adjust their defenses to keep up with criminals’ new behavior. SpyCloud allows you to do just that – and we will continue to illuminate and resolve the most critical risks facing security teams today, stopping attacks they haven’t been able to see coming.”

Sustained Growth

The company’s vision to address the identity-related threats has led to immense and sustained growth in recent years. Following a $30 million Series C funding round in 2020, SpyCloud tripled its revenue and created cutting-edge solutions to mitigate new and prevalent cyberattacks for large and mid-sized enterprises including top financial institutions, retailers, and software and technology companies. Its partnerships include popular identity monitoring services and MSSPs who leverage SpyCloud’s analytics to deliver ongoing value to consumers and businesses of all sizes.

“Today, a significant majority of cyberattacks use identity-based techniques. We see a growing need for identity threat prevention solutions to address this threat vector and SpyCloud stands alone as a leader in identity protection,” said Jeff Parks, Co-Founder and Managing Partner at Riverwood Capital. “SpyCloud has demonstrated its unique capabilities in detecting identity-related threats and helping enterprises, including some of the largest companies in the world, take preventative steps to limit widespread damages. We are excited to partner with Ted and SpyCloud’s extraordinary team as they build on the company’s success and continue to disrupt the cybersecurity industry.”

Silverton Partners, a long-time SpyCloud investor and additional participant in this funding round, views SpyCloud as a market innovator for its proven ability to stay ahead of cybercriminals.

“Silverton is excited to participate in SpyCloud’s financing and continue our long-standing support of a true market innovator. SpyCloud’s products defend against sophisticated attackers by anticipating the evolution of criminal tactics in a way no other vendor has accomplished,” said Kip McClanahan, General Partner at Silverton Partners, investors in the company since its seed round. “This advanced thinking and dedication to the industry has been consistent since day one and is a core driver of the company’s impressive growth.”

SpyCloud’s technology innovation has garnered prominent accolades and awards including recognition as a 2022 Deloitte Technology Fast 500 recipient, an SC Award for Best Threat Detection Technology, a Global InfoSec Award for Enterprise Security and three Gold Cybersecurity Excellence Awards for Insider Threat Solution, Ransomware Protection and Fraud Prevention. Additionally SpyCloud has consecutively ranked as a Top Ten Best Place to Work by the Austin Business Journal.

To learn more about how SpyCloud is leading a paradigm shift in the fight against cybercrime, visit spycloud.com.

About SpyCloud

SpyCloud transforms recaptured darknet data to protect businesses from identity-based cyberattacks. Its products deliver actionable insights that allow enterprises to proactively prevent ransomware and account takeover, protect their business from consumer fraud losses, and investigate cybercrime incidents. Its unique data from breaches, malware-infected devices, and other underground sources also powers many popular dark web monitoring and identity theft protection offerings. SpyCloud customers include half of the ten largest global enterprises, mid-size companies, and government agencies, and its solutions protect over four billion accounts globally. Headquartered in Austin, TX, SpyCloud is home to nearly 200 cybersecurity experts whose mission is to make the internet safer with automated solutions that help organizations combat cybercrime. To learn more and see insights on your company’s exposed data, visit spycloud.com.

About Riverwood Capital

Riverwood Capital invests in high-growth companies in the technology and technology-enabled industries. Riverwood offers a unique combination of operational, strategic, technology, and financial insight to portfolio companies that typically need growth capital and expertise to scale on a global basis. The firm seeks to invest in established businesses with a proven technology and business model, and the proper fit in terms of culture and values. Riverwood was founded in 2008 and has had the opportunity to invest in and support over 70 companies since inception, which have grown revenues at 45% per year on average during that period. The Firm has offices in Menlo Park, CA; Miami, FL; New York, NY; and São Paulo, Brazil. For more information, visit www.riverwoodcapital.com.

Foley & Lardner LLP served as legal advisor and BofA Securities acted as a financial advisor to Riverwood Capital on this transaction.

Important Notice Regarding Forward-Looking Statements: This press release contains certain “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended. Statements that are not historical facts, including statements about the pending transactions described above, and the parties’ perspectives and expectations, are forward-looking statements. Such statements include, but are not limited to, statements regarding the proposed transaction, including the anticipated benefits of the company’s products and the proposed transaction, the benefits of the proposed transaction, expected uses of proceeds, anticipated future performance and operational plans. The words “enable,” “expect,” “believe,” “estimate,” “intend,” “plans” and similar expressions indicate forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to various risks and uncertainties, assumptions (including assumptions about general economic, market, industry and operational factors), known or unknown, which could cause the actual results to vary materially from those indicated or anticipated.

Such risks and uncertainties include, but are not limited to: (i) risks related to the expected timing and likelihood of completion of the pending transaction, including the risk that the transaction may not close due to one or more closing conditions to the transaction not being satisfied or waived; (ii) risks related to the ability of SpyCloud to successfully deploy the proceeds to advance the business; and (iii) other risks inherent to emerging growth businesses in the cybersecurity industry. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements relate only to the date they were made, and SpyCloud undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation.