Cybersecurity firm Netcraft has secured a substantial $100 million investment in a funding round led by private equity investor Spectrum Equity. This comes at a time when funding for cybersecurity startups is slowing down due to market oversaturation and the broader economic slowdown. Despite this, the cybersecurity market continues to outpace the tech industry, experiencing 12.5% year-over-year growth in the first quarter of 2023.
Netcraft, which was founded in 1995, offers subscription-based services for detecting, disrupting, and taking down cybercrime. The company utilizes artificial intelligence (AI) to combat online threats such as brand infringement, phishing, executive impersonation, and fake e-commerce sites. By engaging with bad actors at scale, particularly those involved in investment, cryptocurrency, and money transfer scams, Netcraft is able to collect valuable information to aid in their takedown.
In addition to automation services, Netcraft provides a threat intelligence feed covering cybercrime targeting major institutions and conducts a web survey that includes data on approximately 1 billion websites. This wealth of data, combined with machine learning, allows Netcraft to accurately detect and combat attacks in real-time.
The increasing challenge of cybersecurity threats is evident in the rise of phishing attacks, which saw a 48% increase in the first half of 2022. It is projected that the annual damages caused by cyberattacks will reach approximately $10.5 trillion by 2025, marking a 300% increase from 2015 levels.
Netcraft’s impressive client base, which includes 10 of the largest 20 banks in Europe, three of the largest four global corporations, and eight of the world’s largest governments, played a role in Spectrum Equity’s decision to invest in the company. To accommodate its expanding customer base, Netcraft plans to increase its team by 30% this year.
The investment from Spectrum Equity will be utilized by Netcraft to expand its range of services, recruit additional talent, and enhance its customer success efforts. With cybercrime showing no signs of slowing down, Netcraft aims to continue its mission of detecting and disrupting cybercrime to ensure a safer online experience for internet users.
In a landscape where the funding for cybersecurity startups is on the decline, Netcraft’s ability to secure a significant investment highlights its position as a leading player in the industry. With its advanced automated solution, the company has successfully thwarted millions of cyberattacks, earning the trust of numerous blue-chip customers.
As the cybersecurity sector continues to evolve and face new challenges, Netcraft remains at the forefront, combining automation, human expertise, and technical prowess to provide a comprehensive defense strategy against cyber threats. This latest investment will further strengthen Netcraft’s capabilities and drive its commitment to staying one step ahead of emerging threats.
