Washington, DC-based Encryption-as-a-Service
(EaaS) company Virtru, that provides data encryption solutions and digital privacy for emails and files, has raised $29 million in Series A financing led by Bessemer Venture Partners (BVP
). Venture capital firms including New Enterprise Associates (NEA
), Soros Fund Management, Haystack Partners
, Quadrant Capital Advisors
, and Blue Delta Capital also participated in the round of funds.
David Cowan, BVP Partner, took the opportunity and said, “As we share our personal information with banks, doctors, schools, employers, and governments, our individual privacy depends upon their security. The success of Virtru’s email and file protection offerings show that they’re setting the new standard for business privacy.”
The capital, says the encryption specialist, will be used to accelerate operations and expand its reach in international market. It plans to build new products to protect all types of data, and extend its Software Development Kits (SDKs) and Application Program Interfaces (APIs) for software developers to integrate Virtru into their applications. It also eyes to accelerate support for cloud platforms like Microsoft Office 365 for businesses.
In Conjunction with the deal Wayne Jackson, CEO of Sonatype and former CEO of Sourcefire, will join BVP’s Cowan at the Board of Directors at Virtru. In a time, where organizations are looking for ways to keep email and other online data safe from breaches and leaks, Virtru hopes to simplify data encryption and optimize the process.
How does it work?
It claims to work within existing email system which wraps content of a mail in a locked encryption which only allows the sender and the recipient to decrypt. When the recipient opens the email, they verify their identity in apparently a couple clicks, with no requirement of any extra software installation. So, hackers or intruders sit with no sensitive data but layers of encryption upon attempting any kind of hack.
It also integrates encryption, access control, and data loss prevention (DLP) into tools like Gmail, Google Drive, and Microsoft Outlook and claims to support compliance with regulations like HIPAA, FERPA, CJIS, and ITAR, said the company.
John Ackerly, CEO and Co-Founder of Virtru, stated:
“We’ve always been about making it easy for people to take back control of their private information, on their terms and without unnecessary complexity. With the new funding and the support of best security and privacy investors and operators in the industry, we will take our mission to more businesses, software developers and individuals around the world.”
Virtru as a service, is built upon Trusted Data Format (TDF), an open-source technology invented by company Co-Founder Will Ackerly (brother to John Ackerly) a former cloud security architect at the NSA and offers services in sectors like healthcare, government, real estate and education.
Reportedly, it hosts patented technologies which include full-text search of encrypted content and the ability to use existing identity for authentication in ensuring that customers no longer need to trade privacy for convenience. Amongst other basic features it also provides Administrative Dashboard, Data Loss Prevention (DLP) Rules, Distribution Group and Alias Support, Message Revocation, Message Expiration, Forwarding Control, Read Receipts and PDF Watermarking to business that leverage its offerings.
Co-founded by Ackerly brothers in 2012, Virtru saw its first product launch in 2014 and since has raised has raised $39.3 million in total funding. Earlier in June, it had secured $6 million round of financing led by Bessemer Venture Partners (BVP). It also vouches to provide email and file encryption to over 4,000 enterprises. And shares market space with similar service providers like ProtonMail