Cloud Security Startup Alcion Raises $21 Million in Series A Funding Led by Veeam
Cloud security startup Alcion has secured $21 million in a Series A funding round led by Veeam, an IT company owned by Insight Partners. Alcion offers a platform described as backup-as-a-service, which provides disaster recovery, anti-ransomware, anti-malware, and compliance tools for businesses with cloud-based workloads in Microsoft 365.
The investment from Veeam is notable considering that the company competes with Alcion in the areas of data backup/restoration and disaster recovery. However, Alcion CEO Niraj Tolia sees it as a vote of confidence in the company’s growth strategy. He claims that Alcion’s platform, which is built on modern and AI-driven architecture, addresses data management challenges faced by companies storing data in the cloud, including ransomware and malware threats, as well as compliance.
Alcion focuses on managing and securing data stored in third-party software-as-a-service (SaaS) apps across Microsoft 365. The platform utilizes AI models to detect ransomware at the file and user levels, enabling it to identify targeted attacks more effectively than services relying on static rules. Alcion also provides data backup and alerts for potential malware via email and a web dashboard. It offers recommendations based on past data activity and a compliance score that evaluates security configurations and data backups.
Despite the presence of other companies providing backup and security solutions for enterprise data, Tolia believes that Alcion is sufficiently differentiated. He points to the company’s per-seat pricing with unlimited storage, free Microsoft SharePoint backups, and focus on improving security as factors that set them apart. Tolia also emphasizes the use of AI to enhance security and reduce manual work for users, which is particularly relevant in an environment where ransomware concerns are high but budgets are constrained.
While specific details about Alcion’s customer base and revenue were not disclosed, Tolia mentioned that numerous customers are actively using the startup’s tools and services. The latest funding will be used to support Alcion’s go-to-market efforts, expand its product portfolio, and grow its product and engineering teams.
Alcion plans to increase its headcount from 21 to 30 or more by the end of the year. The company aims to add more regions to better serve customers, enhance its product offerings for other SaaS services, and invest in sales and marketing.
The investment from Veeam reinforces Alcion’s position in the cloud security market and highlights the growing demand for tools that help organizations manage and secure their cloud-stored data. With more businesses transitioning to the cloud, the need for robust security measures becomes paramount. Alcion’s platform, with its focus on disaster recovery, anti-ransomware, and anti-malware capabilities, presents a compelling solution for companies seeking to protect their data in the cloud.
