DefenseStorm secures $15m in new financing round
By Edlyn Cardoza
DefenseStorm, a leading provider of cloud-based cyber security, compliance and fraud technology and managed services to financial institutions, recently completed a $15 million Series C raise. A $5 million investment led the round from JAM FINTOP, a venture fund with more than 80 community and mid-size bank limited partners. The remaining $10 million in funds came from existing investors. This round brings DefenseStorm’s total funding to $67 million.
“DefenseStorm and JAM FINTOP are fully aligned in our missions to make the best technology available to community banks. Our comprehensive approach to cyber risk makes it possible for all banks to take the right steps to protect their assets, customers, and reputation,” said Steve Soukup, CEO of DefenseStorm. “Our integrated technology platform is purposefully Built for Banking, meaning everything we do is designed to meet the demanding requirements and regulations placed on banks. Additionally, our team of cyber experts provides the much-needed resources that many banks struggle to hire and retain. It’s a true partnership, with our co-managed, dynamic system ensuring community banks can effectively respond to the constantly evolving world of cyber threats.”
As a big part of the fabric of the American economy, it’s crucial for community banks to remain strong and ready to deal with the real threat of cyber risk. An average community bank faces 90 million cyber events every day. However, most don’t have the technology and human expertise to cope. Given their expertise in managing the risk associated with their loan and credit portfolios, they can fall into believing their cyber practices are good enough.
“We invest in companies that are committed to solving the problems of the financial world, so DefenseStorm is a natural fit for our portfolio and partner banks,” said John Philpott, General Partner at FINTOP Capital. “Many of our community bank partners don’t have the resources to develop and implement technology the way the massive global banks do. As a result, they are actively looking for solutions to improve their competitiveness and financial performance.” Accompanying the round, Philpott will join DefenseStorm’s Board of Directors as an observer.
JAM FINTOP and DefenseStorm are building a community of trust, so all companies in the financial world can grow and thrive together. This includes bringing together financial institutions, business partners, government agencies and others to share incidents that can make the industry better. It’s a concerted effort to make communities better by stopping threat actors who hold businesses hostage with ransomware or steal an individual’s credit card.
IBSi Daily News Analysis
December 02, 2022
Why are banking players flocking to Middle Eastern digital banks?Read More
IBSi FinTech Journal
- Most trusted FinTech journal since 1991
- Digital monthly issue
- 60+ pages of research, analysis, interviews, opinions, and rankings
- Global coverage