New Investment Opportunity: Sotero
Securing data anywhere, anytime, at rest, in use, and in transit
- Long-awaited database cybersecurity fix that enables the use and sharing of data in encrypted state
- Projecting 600% YOY ARR growth to end 2022
- Customers include global pharmaceutical company
- Secures data for file sharing, transition to cloud and next-generation unstructured databases
- Provides centralized CISO management of health and other sensitive data, solving longstanding issue for major institutions
- OurCrowd allocation of $2.2M in fully-subscribed $8M Seed Extension II; Gutbrain Ventures, PBJ Capital, Boston Seed Capital co-investing
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Dear Josb,
The global average cost of a data breach is over $4M. Traditional methods of securing data with encryption have big gaps. They only secure data at rest, which is sitting in storage, or data in transit. They do not secure data when it is being used, and there are vulnerabilities in the ever increasing amount of cloud-based data.
OurCrowd is investing in Sotero, an early-stage company based in Boston that is developing the next generation of data security that is addressing these vulnerabilities. The details in this email are based on information received from, and verified solely by, the company.
The problem
The most important tool for protecting sensitive digital information is encryption. Traditional approaches to encryption are based on particular applications encrypting the data they work with. Disk encryption protects the data while it is at rest on the disk. The standard encrypted communications links, SSL and TSL, encrypt the data when it is being transmitted from one system to another.
These techniques leave gaps. The data is unprotected when it is being used. A hacker who obtained direct access to a database has breached the disk encryption. Database administrators, whether employees or consultants, have access to the encrypted data and could review or steal data they should not be able to see. Similarly, data stored in the cloud may be accessible to employees of the provider.
Endpoints, such as mobile applications, point-of-sale systems, and IoT devices may not be secure, providing cybercriminals a way into the network. Once they have access, they have access to sensitive data on encrypted disks.
The solution
Sotero has a patented technique for securing data while it is in use. This is a new approach to data protection. It secures the data itself, not just the application, database, or network in which the data resides, or when it is being transmitted.
Data can be used and shared in its encrypted state. The data remains encrypted at all times. Rights to access the data are limited based on role-based access control. Anyone not authorized to access the data only sees gibberish if they try to access the data, including system administrators.
The Sotero platform applies a machine learning-based anomaly detection engine to verify that data requests are authorized, flagging or blocking malicious activity.
Sotero's solution provides a secure way to share files with third parties, a vitally important feature in healthcare, where there are both needs to share data among providers and researchers, and very strong security requirements. It provides chief information security officers with a centralized platform from which to manage security, as opposed to having to work with multiple-point solutions.
The product eases security concerns surrounding companies moving to the cloud, as the data has the same encryption and controls regardless of where it resides. Sotero supports structured, semi-structured, and unstructured databases.
Traction
Sotero is currently serving five customers, including a global pharmaceutical company. The company projects it will have over 20 customers by the end of 2022. Current ARR is projected to increase 600% YOY by the end of 2022 to $3.5M from $472K at the end of 2021.
The round
OurCrowd has an allocation of $2.2M in a fully-subscribed $8M Seed Extension II round. Gutbrain Ventures, PBJ Capital, and Boston Seed Capital are co-investing.
Funds from this round will provide 24 months of runway allowing for staff expansion and additional expenses as the company grows.
Meet the CEO
We're hosting a webinar/conference call on Thursday, March 17th, at 7PM Israel / 1PM New York / 10AM San Francisco for investors to meet CEO Purandar Das and learn more about Sotero.
Can't make the webinar? Register and we will send you a recording of the call.
The Sotero Solution
Sotero's Data Security Platform uses the company's Intelligent Data Security Fabric to ensure that sensitive data is never left unprotected. Sotero automatically secures the data regardless of where it is, and whether it is at rest, in transit, or in use.
The Data Security Platform is a cloud-native, zero trust platform that consolidates the entire data security stack into a single platform providing an easy-to-manage environment.
Role-based access control ensures that no unauthorized users, not even database administrators at the company or at a cloud provider, can see the data.
Anomaly detection at the data level combined with machine learning detects and prevents threats in real time, providing advanced ransomware detection.
Next steps:
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