The most recent round was led by fintech firm Georgian, with participation from Atlanta-based TTV Capital. The startup also announced $7 million in growth capital financing from CIBC Innovation Banking, according to a statement.
DefenseStorm has made a name for itself in the fintech space by building cloud-based cybersecurity products for regional banks and credit unions. The funding comes as DefenseStorm looks to grow its cybersecurity and cybercompliance solutions.
“Needless to say, a lot has changed in the last year with the global pandemic,” CEO Steve Soukup told Hypepotamus. “Most noticeably in our industry was a dramatic increase in the demand for our products and services as financial institutions saw a surge in cyberthreats against them. In addition, compliance requirements continue to become more stringent, and our Active Compliance 2.0 solution seamlessly addresses the changing demands of auditors and regulators to ensure our customers remain in compliance.”
Soukup added that DefenseStorm added 12 new customers in the first half of 2020 and reported a 305% growth rate from 2016 to 2019. “We’ve also received validation of the value we provide to the banking vertical through an amazing track record of customer renewals. We will continue to invest in sales and marketing in order to amplify our voice in the market while expanding our impact as we onboard more customers.”
In October, DefenseStorm also recently hired several key product managers and engineers and plans to use the new funding for both technical and user-facing products.
Looking ahead to 2021, Soukup says he sees an opportunity to begin serving larger regional banks. He also believes that several key trends show that DefenseStorm is strategically placed to address growing cybersecurity threats seen in the banking and fintech spaces.
“We believe social engineering techniques, such as phishing and SIM card swapping, will continue as a primary attack vector. And, as remote work continues, internet-facing vulnerabilities will continue to be exploited. Cybercriminals are smart, and getting by smarter by the day. Their use of system administration tools will increase, as will their ability to manually operate ransomware to concentrate on larger, more lucrative targets,” Soukup told Hypepotamus.
“It appears the incoming administration plans to get more prescriptive in its approach to cyber and compliance. We are focused on continuing to address that dynamic for our customers. Also, the pandemic is increasing uncertainty in terms of planning and performance for many of the institutions we serve. We have to adapt quickly as conditions around the pandemic and the economy change rapidly, and be flexible in terms of how we do business within the banking sector.”