A report by the FBI on internet crime found that in 2021 email hackers cost businesses nearly $2.4 billion in losses. Abnormal Security, a San Francisco-based cybersecurity company, believes that the number of email attacks has significantly risen as employees moved from the office to working at home during the pandemic. Given this increase, the company has been making security solutions for the modern workforce and it recently raised new capital.
On Tuesday, Abnormal Security announced that it raised $210 million in a Series C round, bringing its valuation to $4 billion. The round was led by Insight Partners, an NYC-based VC firm with over 600 investments in software startups. Since launching, Abnormal Security has raised $284 million in venture funding, according to Crunchbase.
Abnormal Security uses AI to provide security solutions to protect organizations from email attacks. Using an API, Abnormal can protect email accounts from phishing, malware, ransomware, social engineering, spam and graymail attacks. The API can also be used to provide additional security for Microsoft 365 and Google workspace accounts.
“It is clear that a new breed of cybersecurity solutions that leverage AI is required to change the game and stop the rising threat of sophisticated and targeted email attacks,” Jeff Horing, co-founder and managing director at Insight Partners, said in a statement. “There is simply too much data for humans to analyze and determine what’s real and what’s a threat. We invested in Abnormal because it is uniquely positioned to protect organizations’ email in the cloud with its AI-driven approach. Secure email gateways can no longer reliably secure email, with many organizations having moved to the cloud and modern attacks successfully evading them. What worked 20 years, or even 10 years ago, is no longer applicable.”
Abnormal Security is used by several Fortune 1000 companies including Xerox, Urban Outfitters, Groupon and Royal Caribbean International, among others. According to Evan Reiser, CEO and co-founder of Abnormal Security, the company has a 99 percent renewal rate with customers who use Abnormal Security for their email security needs.
The company also had a stellar 2021. It tripled its revenue, doubled its headcount and even released a new security platform.
Abnormal Security is currently hiring for several roles on Built In.
