& cplSiteName &

Darktrace Raises $75M to Fight Cybercrime With AI

Sarah Thomas
7/11/2017
0%
100%

Darktrace, a startup that tackles cybercrime with artificial intelligence capabilities, has raised $75 million in a Series D round. The latest capital injection values the company at $825 million, testament to the security threat faced by network operators and enterprises and the power of machine learning technology.

The UK-based cybersecurity firm, backed by Autonomy's Mike Lynch, founded by University of Cambridge mathematicians and British intelligence agency veterans, and led by CEO Nicole Egan, has raised a total of $180 million since its inception in 2013. Insight Venture Partners led the latest funding round, along with existing investors Summit Partners, KKR and TenEleven Ventures.

Darktrace says it will use the funding to invest in sales and marketing, keep up with growth in the US and expand in the Asia/Pacific and Latin America regions. The company counts 3,000 enterprises across the globe in its customer roster. It has seen unprecedented growth during the past year, claiming to have contracts worth $200 million, a 140% yearly increase driven by tripled growth in the US. It has also doubled its headcount in the past 12 months to 500 employees.

The startup has caught the interest of investors and customers alike for its artificial intelligence algorithms that can spot patterns in networks, whether they be physical, virtual, cloud, IoT or industrial control systems, and block cybercrimes before they occur. Darktrace claims to have identified 30,000 previously unknown threats in more than 3,000 networks, including "zero-days, insider threats and subtle, stealthy attacks."


For more on artificial intelligence in the world of telecom, visit the dedicated automation content page here on Light Reading.


Cybercrime is a big business as attacks get more sophisticated and prevention becomes increasingly important. All enterprises, including telecom service providers, are investing in protecting their networks, especially after recent high-profile attacks such as WannaCry and NotPetya. (See CenturyLink: Are We All Security Service Providers Now? and WannaCry Continues at a Slowed Pace.)

At the same time, AI capabilities are quickly gaining traction as the technologies to revolutionize everything from customer care to network operations to cybersecurity. As such, startups like Darktrace are attracting attention, funding and the interest of established players looking to plug holes in their security offerings. (See Machine Learning at Heart of Security M&A Splurge.)

Darktrace serves all industry sectors with its Enterprise Immune System platform, and about 15% of its business is in the telecom and tech space. It separately announced today that it's partnering with Hong Kong's CITIC Telecom CPC, a telecom subsidiary that provides managed security services in Asia. Darktrace also counts BT and Telstra Corp. Ltd. (ASX: TLS; NZK: TLS) amongst its global telco customer base. (See BT, KPMG Highlight Cybersecurity Traps.)

— Sarah Thomas, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Director, Women in Comms

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Michelle
50%
50%
Michelle,
User Rank: Light Sabre
7/23/2017 | 6:35:54 PM
Re: Necessary
Hmm, maybe we're reading that wrong. Marketing is the new security, right? I hope there's more to the story! That IS a lot of advertising...
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
7/22/2017 | 9:05:57 AM
Re: Necessary
With 3000 customers and $75 million new money added they would seem to be on solid ground for the investors. But, I wonder why they say "it will use the funding to invest in sales and marketing." That's a lot of advertising.
danielcawrey
0%
100%
danielcawrey,
User Rank: Light Sabre
7/11/2017 | 2:56:09 PM
Necessary
I can see how a number of firms would find Darktrace usefule. It cetainly can be a tool in a large toolket for some companies. And as long as Darktrace continues to offer products and services, customers will buy them. Security is just that hard. 
Featured Video
From The Founder
Light Reading founder Steve Saunders grills Cisco's Roland Acra on how he's bringing automation to life inside the data center.
Flash Poll
Upcoming Live Events
March 20-22, 2018, Denver Marriott Tech Center
March 22, 2018, Denver, Colorado | Denver Marriott Tech Center
March 28, 2018, Kansas City Convention Center
April 4, 2018, The Westin Dallas Downtown, Dallas
April 9, 2018, Las Vegas Convention Center
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Federal Funds for Broadband? Unlikely
Mari Silbey, Senior Editor, Cable/Video, 2/12/2018
Has Europe Switched to a Fiber Diet? Not Yet...
Ray Le Maistre, Editor-in-Chief, 2/15/2018
Net Neutrality: States' Rights vs. the FCC
Mari Silbey, Senior Editor, Cable/Video, 2/13/2018
Will China React to Latest US Huawei, ZTE Slapdown?
Ray Le Maistre, Editor-in-Chief, 2/16/2018
IBM, Microsoft Duke It Out Over Chief Diversity Hire
Sarah Thomas, Director, Women in Comms, 2/15/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed