Israeli web security firm secures $10.5 million in funding

The company has tripled its sales in the past year, luring a number of big-name investors into their cadre - including JVP, Capital One Ventures, Allegis Cyber, Global Brain and NightDragon.

A man is reflected in a monitor as he takes part in a training session at Cybergym, a cyber-warfare training facility backed by the Israel Electric Corporation, at their training center in Hadera. (photo credit: REUTERS/RONEN ZEVULUN)
A man is reflected in a monitor as he takes part in a training session at Cybergym, a cyber-warfare training facility backed by the Israel Electric Corporation, at their training center in Hadera.
(photo credit: REUTERS/RONEN ZEVULUN)
Source Defense, an industry leader in client-based web security, raised $10.5 million in Series A+ funding, which it will use to accelerate growth and enhance its patented VICE Client-side Web Security Platform to align with growing market demand, the company announced on Tuesday.
The company's patented technology provides clients with the ability to prevent malicious activity originating in website supply-chain vendors from reaching their servers, parrying third-party attacks using an automated system that tethers machine learning and industry best practices into their software, to control access and permissions to the various components operating on a website.
“The demand for combining premium online shopping experience with the state-of-the-art security controls has proved an urgent need for our solution,” said Source Defense CEO Dan Dinnar. “Our success with several Fortune 500 companies, including a most recent deployment at a Fortune 50 company, is proof of the value we can provide industry leaders, in view of rampant activity by attackers.”
Dan Dinnar - CEO Source Defense (Courtesy Source Defense)Dan Dinnar - CEO Source Defense (Courtesy Source Defense)
The patented VICE platform protects webpages by sifting out vulnerabilities originating from third-party scripts, such as openings that allow Magecart and formjacking cyberattacks, which target consumer information and payment methods. Most electronic commerce sites that use shopping carts and other forms don't properly vet the code used with these third party services – which turns the job of the consortium of Magecart hackers into a piece of cake.
“Magecart attacks were the most impactful and dominant threat vector of 2019. Source Defense is uniquely positioned as the most effective preventative solution, providing ubiquitous security, improved compliance (primarily related to GDPR, PCI, CCPA, HIPAA), and accelerated website performance,” said Yoav Tzruya, General Partner at Jerusalem Venture Partners (JVP).
Over the past year, formjacking and Magecart attacks have been on the rise, according to Dave DeWalt, managing director at NightDragon Security.
"These client-side attacks happen undetected and outside the visibility of the typical enterprise web security suite. Attackers have used these techniques to steal massive amounts of customers and transactional data across industries, with particular damage to eCommerce, financial services, healthcare companies and government agencies," he said.
The company itself has tripled its sales in the past year, which has recently lured a number of big-name investors into their cadre, most recently Capital One Ventures which joined existing investors such as JVP, Allegis Cyber, Global Brain and NightDragon during this round of funding.
Erel Margalit, JVP Founder and Chairman (JVP)Erel Margalit, JVP Founder and Chairman (JVP)
"Source Defense's innovative solution is becoming much more significant with the surge in cyberattacks since the [coronavirus] eruption," said Erel Margalit, JVP founder and chairman. "We are happy to work again with Dan Dinnar, CEO, who has already demonstrated his excellent management capabilities in key positions at JVP's portfolio companies, CyberArk (CYBR) and HexaTier, the founders and the team.
"We believe in the high growth potential of Source Defense and its capabilities to create a new global standard to protect websites,” he said.
With COVID-19 driving online business and accelerating demand for company's solutions, Dinnar said that the most recent round of funding is "a vote of confidence in our technology and business plan despite what is going on in the world today. Our team is busier than ever and [we] appreciate the continued trust and support of our investors.”
The Source Defense Team (Courtesy of Source Defense)The Source Defense Team (Courtesy of Source Defense)