Cybersecurity Startup Dtex Brings In $17.5M Series D To Expand Into New Industries

Insider threat cybersecurity company Dtex raised $17.5 million in a Series D round of funding, the company announced Thursday.

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The new round of funding was led by Northgate Capital with additional participation from existing investors Norwest Venture Partners and Four Rivers Group. This Series D brings the total amount of funding raised by the San Jose-based company to $60 million. The last funding round for the company happened in a $10 million Series C in 2017 and 2018, led by Norwest.

Dtex President and CEO Bahman Mahbod previously worked at another security firm, FireEye. Insider threat security needed a revamp, he said.

“Year after year, billions of dollars are spent on cybersecurity, yet companies are still unable to answer simple questions, such as where did the threat come from, which customers were compromised or what apps or tools were leveraged,” Mahbod told Crunchbase News.

Dtex’s next-gen insider threat platform delivers “always-on” security to proactively illuminate dangerous activity in real-time across the entire organization, uncovering risky behavior well before an incident occurs, he said.

“Dtex has built a highly scalable platform that utilizes a cloud-first, lightweight endpoint architecture, offering clients a number of use cases including insider threat prevention and business operations intelligence,” Thorsten Claus, partner at Northgate Capital, said in a written statement. “With Dtex, we have found a fast-growing, long-term, investible operation that is not just a band-aid collection of tools, which would be short-lived and replaced.”

The company is among several cybersecurity companies that recently raised funding. Last week, Israel-based Orca Security, secured a $20 million Series A. In April, Austin-based Living Security closed on a $5 million Series A funding, while New York-based Axonius received $58 million in Series C funding in March.

Meanwhile, Dtex doubled its revenue in 2019 and has established customer verticals including banking and financial services, critical infrastructure, government and defense, Mahbod said.

The company will use some of the Series D funding to expand into new industries, including pharmaceuticals, life sciences and manufacturing, he added. It will also work on infrastructure, sales support and research and development.

Dtex targets Fortune 1000 companies, many that are looking for a cybersecurity solution for specific use cases, including how to secure workers while they work from home, Mahbod said.

“All of the constant fluctuation, bring-your-own-devices, cloud services and servers are now exasperated by tens of thousands of employees working from home,” he said. “This is going to be with us going forward, so organizations need to have the right technology to help employees be productive and safe while being able to protect their own servers.”

Illustration: Li-Anne Dias