CipherCloud Closes $50 Million in Financing

CipherCloud, Inc., in cloud visibility and data protection, announced a $50 million round of financing.

Transamerica Ventures led the round, joined by Delta Partners, and existing investors Andreessen Horowitz and T-Venture, VC arm of Deutsche Telekom.

CipherCloud will use the new financing to fuel its go-to-market activities, support international growth in Europe and AsiaPac, drive the enterprise adoption of its cloud security platform among enterprises, as well as advance product innovation efforts to protect the cloud against a growing set of risks.

In addition, this round of financing validates the importance of cloud visibility and data protection among enterprises and CipherCloud’s leadership in what has become one of the most important technology changes in the enterprise – the rapid adoption of cloud applications for workplace productivity, collaboration, storage and business processes like CRM, and the surge of data that is stored in them.

“Transamerica has a very targeted focus on working and supporting innovative entrepreneurs to build category-leading companies,” said Georg Schwegler, CEO, Transamerica Ventures. “CipherCloud is successfully helping enterprises to securely adopt cloud applications with its innovative portfolio of cloud security solutions and is poised for impressive growth. Transamerica Ventures has strong confidence in CipherCloud, given its leadership’s track record, its growing customer base and expanding partner network.”

The cloud has become strategic to businesses in industries including financial services, healthcare, telecommunications and even government agencies. Organizations that are not adopting the cloud are rapidly finding themselves at a competitive disadvantage. CipherCloud has increasingly become a provider to secure data in the cloud by making it possible to ensure high level of security, including searchable encryption and tokenization, while preserving application functionality.

“Security and privacy are inhibitors that prevent organizations from adopting cloud applications and CipherCloud solves these challenges in an elegant way,” said Andreessen Horowitz partner, John M. Jack. “Since its founding, the team continues to demonstrate smart vision and agile execution in lock step with the cloud risks mitigation their customers need. Their hockey stick growth testifies to the market demand for their products.”

CipherCloud has brought to market a complete cloud security platform, a game changing step in the innovation of cloud security that is poised for continued rapid growth as the cloud market hits $191.3 billion in 2020.

CipherCloud cloud security platform contains following components:

• cloud application discovery that provides aggregated reporting and dashboards of cloud applications including understanding employee usage and behavior, whether they are using enterprise approved cloud applications or not, and the level of risk of using them, and putting data into them.
• cloud data security that delivers based on corporate policies, industry regulations, or country required compliance laws the maximum level of protection to all sensitive data through a combination of searchable strong encryption, tokenization and malware detection controls.
• cloud user monitoring that enables the tracking and identification of anomalies that help to reduce the source of risk from both of insider and external threats.

“We began our cloud security journey in 2010 by solving the cryptographer’s dilemma – enabling the breakthrough of searchable strong encryption while preserving the operations of cloud applications,” said Pravin Kothari, founder and CEO, CipherCloud. “Now four years later, CipherCloud is the clear leader in the market with over three million users and is establishing the standard for how enterprises adopt the cloud while controlling and securing their data.”

He continued: “We are thrilled to have five of the top 10 US banks, top healthcare providers, the largest pharmaceutical companies, global telecommunications companies, as well as some of the largest government agencies in the world as customers. This new financing will help us grow even more rapidly and further dominate the market.“

CipherCloud’s cloud visibility and data protection platform enables businesses to accelerate their adoption of cloud applications including Salesforce.com, Microsoft Office 365, ServiceNow, Box and others while ensuring security, compliance and control of their data.

“CipherCloud has established a global leadership position right at the intersection of two of the most interesting trends that we are seeing, namely the continued migration of businesses to cloud services and the need for greater data protection required by both regulators and customers,” said Kristoff Puelinckx, group co-MD, Delta Partners, an investment firm whose limited partners include the World Bank/IMF. “We look forward to actively supporting the management team at CipherCloud in the company’s continued growth and development.”