San Jose-based cybersecurity company TrapX has secured $18 million in a round led by Ibex Investors, bringing its total raised to nearly $50 million. This follows a $14 million series B in June 2015 and a $14 million follow-on round in June 2017. CEO Moshe Ben-Simon said this latest capital infusion, which included participation from existing investors Strategic Cyber Ventures, Liberty Israel Venture Fund, Intel Capital, BRM Group, and Opus Capital, will help TrapX scale up availability of its cloud-based cyber detection solutions.
“This round of funding is fueling TrapX as we embark on our growth stage of the company,” said Ben-Simon. “Global expansion and continued R&D innovation will be the catalyst for highly regulated industries and those plagued with legacy infrastructure to continue turning to TrapX to detect and deceive today’s cybercriminals.”
TrapX was founded in 2012 by Ben-Simon and Yuval Malach and develops tools that react to detected cyberattacks in real time. The company’s flagship offering — DeceptionGrid — deceives would-be attackers with up to thousands of tailor-made decoys that imitate assets like databases and workstations and alert response teams to anomalous activity through Check Point, Cylance, and comparable toolsets. The decoys support the provisioning of full operating systems and the replication of production servers, and they autonomously change their location and appearance to thwart hackers who attempt to distinguish them from real equipment.
Complementing the decoys are deception tokens that lie embedded in assets, baiting malicious parties with fake passwords and scripts. Concurrently, a separate DeceptionNet component — active traps — creates false network traffic among decoys to confuse and divert traffic-monitoring attacks.
With this suite of tools and a database of real-world breach attempts, DeceptionNet — along with TrapX’s anti-ransomware CryptoTrap offering — can divert threats dynamically and disables them at the start, explained TrapX general manager Ori Bach. “As we look to the future of TrapX, it is obvious that cyber deception is now a part of the core foundation of security architecture, leading to real-time breach detection and prevention,” he said.
The cybersecurity market is expected to grow from $120 billion in 2017 to $300 billion by 2024, driven by an uptick in costly data breaches. TrapX competes to an extent with San Diego-based AttackIQ, which in May raised $17.6 million for its continuous enterprise security monitoring platform, and with Tel Aviv startup Guardcore, which nabbed $60 million to accelerate development of its workload protection solutions for datacenters and public clouds.
But Ibex Investors’ Brian Abrams isn’t concerned. He notes that TrapX uniquely offers an online forum — the DeceptionNet Community — where users can optionally collaborate and share countermeasures with each other or exchange custom decoy templates and third-party connectors. And though he isn’t willing to name names, Abrams says that TrapX has attracted Fortune 500 clients in sectors ranging from defense to health care, finance, and energy.
“TrapX is positioned for a phenomenal opportunity in the cybersecurity market, as legacy security technologies continue to be unable to stop today’s cybercriminals,” said Abrams, who intends to join TrapX’s board of directors. “We are impressed with the company’s continued focus on leading the threat detection market in innovation and cutting edge technology.”