Deals

$29 million to fight malware: How Endgame Systems hopes to secure the cloud

Cyber security company Endgame Systems announced today that it has raised $29 million in its first round of funding from a number of firms including Kleiner Perkins Caufield & Byers.

The funding announcement comes in conjunction with its launch of IPTrust, a security detection suite for preventing malware and botnets — networks of infected computers controlled remotely by hackers — from affecting cloud-based applications. IPTrust provides real-time monitoring of security risks that IT professionals handling cloud-based networks can access and address on the fly.

The software determines if there is a security threat and notifies technical support of the infection. It can also determine the “trustworthiness” of an address from a computer accessing the network by checking if it is from a client or not.

David Cowan of Bessemer Venture Partners and Arun Gupta of Columbia Capital, both experts in wireless technology startups, have joined the Atlanta, Ga.-based company’s board of directors as part of the deal. TechOperators also participated in the round of funding, along with Columbia Capital, Kleiner Perkins, and Bessemer Venture Partners.

More than 280,000 organizations and 250 million IP addresses have been affected by botnet networks and malware, according to Endgame. But there’s increasing danger of hackers using botnets to gain access to a master account on a cloud network and having access to hundreds or thousands of “virtual desktops” — computers that can be run remotely on cloud servers and accessed through the internet.