$30 Million Round Led by Next47 Highlights Armorblox Customer Momentum and Innovative NLU Approach to Stopping Targeted Email Attacks
Armorblox, a cybersecurity innovator that helps organizations communicate more securely over email, today announced that it raised $30 million in Series B venture capital funding. Led by Next47, with participation from Polaris Partners and Unusual Ventures, as well as General Catalyst and other early investors, the funding round brings Armorblox’s total funding to $46.5 million.
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“Feedback from Armorblox customers has been unanimously positive – whether it’s the quick time to value they have seen from the product, the velocity of new capabilities that move the needle for email protection, or how easy they’ve found collaborating with the Armorblox team.”
Armorblox is on a mission to restore and uphold trust in email communications by stopping targeted, socially engineered attacks from compromising people and data. The funding comes amidst fast-paced customer growth during 2020, accelerated further by the widespread shift to remote work and a growing discontent with the complexity and ineffectiveness of traditional email security controls. Already protecting over 9,000 organizations, Armorblox is using the new funding to expand its go-to-market, engineering, and data science teams and further cement its position as a next-generation email security provider that is centered around delivering customer value.
The pace of enterprises shifting to cloud-delivered email increased considerably in 2020, with Gartner’s 2020 Market Guide for Email Security noting that 71% of companies now use cloud or hybrid cloud email1. Enterprise customers are moving away from legacy secure email gateways and now look for augments to built-in email security that are easy to use and take a materially different approach to threat protection. Armorblox deploys rapidly by connecting with Office 365, G Suite, and Exchange over APIs without disturbing the mail flow or requiring MX record changes. The Armorblox Natural Language Understanding (NLU) platform analyzes thousands of signals to understand the context of communications; this context enables it to stop Business Email Compromise (BEC) and targeted phishing attacks, protect sensitive PII and PCI, and automate remediation of user-reported email threats.
“We could not be more excited to join Armorblox on their journey to secure the human layer,” said T.J. Rylander, General Partner at Next47. “Feedback from Armorblox customers has been unanimously positive – whether it’s the quick time to value they have seen from the product, the velocity of new capabilities that move the needle for email protection, or how easy they’ve found collaborating with the Armorblox team.”
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“The biggest benefits of Armorblox to the City of San Jose are the confidence we get that it’s working and preventing a lot of risk from hitting our organization, and the ease of management,” said Rob Lloyd, Chief Information Officer at the City of San Jose. “The fact that we can cover 7,000+ employees, 10,000+ accounts, use AI in a very fruitful and productive way to manage risk, and do so without over inundating our security operations center and cybersecurity staff, are powerful validators of the value Armorblox provides.”
“Security in healthcare requires rethinking the fundamentals at a foundational level. Email is as basic as it gets, and at TeamHealth, we were very impressed by the ability of Armorblox to protect us against targeted attacks, and automate triage and remediation of threats,” said Tom Perrine, CIO and CISO, TeamHealth.
“Our decision to invest in Armorblox was driven by the magnitude of the customer problem it serves as well as the universal applicability of its unique technology,” said Dave Barrett, Managing Partner at Polaris Partners. “The company has experienced exceptional traction across large enterprises, mid-tier and small/medium business segments. Targeted email attacks affect organizations regardless of size, and we’re delighted to partner with a company like Armorblox that combines true enterprise-grade security with consumer-grade simplicity of operations.”
According to the 2020 Verizon Data Breach Investigations Report, 22% of breaches involved social engineering, and 96% of those breaches came through email. In 2019, the FBI Internet Crime Complaint Center (IC3) received over 23,000 complaints about BEC and Email Account Compromise (EAC) with adjusted losses of over $1.7 billion.
“Incumbent email security technology was not designed to protect against the targeted, socially engineered attacks plaguing organizations today,” said DJ Sampath, co-founder and CEO of Armorblox. “Relying solely on threat feeds, metadata, and other one-shot detection techniques will never be enough to stop emails specifically crafted to attack organizations and compromise their business workflows. This funding enables us to continue refining and scaling our approach to context-aware threat detection to protect the most attacked and most vulnerable security layer – the human layer.”