NEW YORK (Reuters) – Billionaire investor Steve Cohen ‘ s Point72 Ventures has invested in a U.S. cybersecurity company that will provide a way to detect, to warn and to protect against data – and identity-related attacks, according to one of the venture capital company’s top officials.
Hedge fund manager Steven A. Cohen, founder and chairman of SAC Capital Advisors, listens to a question during a one-on-one interview session at the SkyBridge Alternatives (SALT) Conference in Las Vegas, Nevada May 11, 2011. REUTERS/Steve Marcus
Armorblox is the first investment of Point72 Ventures’ enterprise technology group, said Noah Carr, a partner in the venture capital business in an interview with Reuters. Point72 declined to disclose the amount invested in the company.
Armorblox said in a statement on Wednesday, increased from $16.5 million in a Series A funding led by another US venture capital company General Catalyst.
Point72 Ventures, which invests in young companies, is financed entirely by the Cohen and the eligible employees of hedge fund Point72 Asset Management, according to its website.
The venture capital company has three funds focused on financial services, artificial intelligence and enterprise technologies.
Cybersecurity, meanwhile, is one of the fastest growing industries in the world. The market is expected to expand from $152.71 billion in 2018, $248.26 billion in 2023, according to a report from research firm MarketsandMarkets.
With employees to communicate through e-mails and documents, people-hacking has become the top attack method for stealing data, Armorblox said. Even when organisations are investing heavily in security solutions and training of the employees, the e-mail remains vulnerable, responsible for 94 percent of all attacks, added.
“Armorblox focuses on two things — find someone who have stolen someone’s credentials, perhaps with the help of your e-mail to communicate, both internally and stop it before he could do something,” Point72’s Carr said.
“The ability to analyze documents. So if there is sensitive information in a document sent in a PDF (portable document format) outside your organization, you can flag a bunch of that information, or stop it from happening. It actually stops that exfiltration of data,” he added.
Chuck Drobny, president and chief executive officer, GlobaLogix said he tapped the Armorblox software and finding an e-mail that supposedly come from him and the set of the chief financial officer to make a payment.
“Other solutions missed, and this could have resulted in us cutting a check to someone who was not authorised,” said Drobny in a statement.
Reporting by Gertrude Chavez-Dreyfuss; Editing by David Gregorio