Cyber threats are mounting, and so are the investments in Boston cybersecurity companies.
Earlier this morning, Threat Stack announced it closed a $45 million funding round. Meanwhile, EiQ Networks announced today it raised $7 million in growth capital and changed its name to Cygilant.
The investment was led by Arrowroot Capital, an earlier backer of Cygilant. The company says its total venture capital haul is now about $38 million.
So, what’s up with the new name? Cygilant rhymes with vigilant, and it’s also a riff on the word sigil, like a sign on a shield, CEO Vijay Basani tells Xconomy.
Cygilant aims to protect customers from data theft, ransomware, malware, and other cyber threats. Its approach involves 24/7 security monitoring through a combination of software and oversight by the company’s security engineers. Cygilant says its capabilities include detecting and responding to attacks, patching software vulnerabilities, and auditing security controls. Other companies that offer similar products and services include Symantec, SecureWorks, and FireEye. Basani adds that his company provides visibility into how well its customers’ security systems and technologies are configured, deployed, and managed.
Cygilant got started in 2002, and initially focused on selling software to large enterprise companies and governments. Around three years ago, it began targeting mid-market customers—regional banks, credit unions, healthcare organizations, universities, and so on. Many of these organizations have limited IT budgets and/or lack the security staff required to defend against cyber threats, Cygilant says.
More organizations are turning to Cygilant, which sells “security as a service” on a subscription basis. The company isn’t profitable, but its revenue has been doubling year-over-year for the past several years, Basani says.
Cygilant employs about 160 people, Basani says. More than 50 of them work at the Boston headquarters, with the rest located at offices in Canada and India, he says.
Cygilant says it plans to hire more people, including security engineers, and invest in product development, customer support, and sales and marketing initiatives.
Xconomy’s Greg Huang contributed to this report.
