Cerby Secures $17M to Bolster Security for Non-Standard Business Apps
Closed a $17 million Series A funding round led by Two Sigma Ventures.
In today's digital age, businesses rely on a myriad of applications to function efficiently. However, not all apps are created equal. Bel Lepe, an ex-Google software engineer, highlighted a prevalent concern: many essential business apps lack support for identity standards, making them a security risk. This gap in the market led to the birth of Cerby, a company dedicated to managing access for these non-standard business-to-business apps.
A survey by the Ponemon Institute revealed that 52% of organizations faced cybersecurity incidents due to their inability to secure such apps. Lepe explained, "Traditional security tools are designed primarily for IT and security users. However, many crucial business apps don't align with security standards. We label these as 'nonstandard apps' because they don't integrate seamlessly with enterprise IT and security tools."
Throughout his career, Lepe recognized this issue but it wasn't until he collaborated with Wizeline, a customer keen on addressing this challenge, that he took action. Together with Vidal González, they founded Cerby. The company recently announced the successful closure of a $17 million Series A funding round. This round saw contributions from notable ventures such as Two Sigma Ventures, Salesforce Ventures, Okta Ventures, Ridge Ventures, Founders Fund, Bowery Capital, AV8, Tau Ventures, Incubate Fund and Carbon Black co-founder Ben Johnson.
Cerby's value proposition is clear. By leveraging identity providers like Okta and Azure AD, Cerby eliminates the need for manual interventions. It automates routine security tasks, ensuring that every app, regardless of its origin or adherence to standards, is integrated into a unified identity framework. This guarantees consistent security standards across an organization.
The process to integrate Cerby is straightforward. Companies link Cerby to their corporate identity provider and then register their apps. Once done, they can access these apps securely. Initially, Cerby's focus was on marketing teams, but they've expanded their services to cater to various departments, from sales to manufacturing.
While Cerby faces competition from firms like Nudge Security and Strata Identity, they have a unique edge. They're looking to incorporate AI, particularly large language models akin to OpenAI's ChatGPT, to enhance their threat detection capabilities. This AI integration will not only scale their offerings but also make their system smarter, providing top-tier security insights even for non-standard apps.
Currently based in San Francisco with a team of 60, Cerby boasts of 26 active clients, including giants like Colgate-Palmolive. With plans to venture into the federal sector by late 2024, the recent funding will be channeled towards expanding their market presence.
Reflecting on their journey, Lepe shared, "We initially planned our Series A for the summer of 2023. However, an early term sheet accelerated our fundraising by three months. Despite tech industry challenges, Cerby stands strong. Our solution bridges the gap between legacy and modern apps in a changing work environment, ensuring our relevance irrespective of market dynamics."