Malia Spencer | February 27, 2013

Wombat Security finishing $1M round

Anti-phishing firm Wombat Security Technologies is finalizing a $1 million funding round and has already closed on $815,000.

The remaining funds are expected to close in the next 45 days, said President and CEO Joe Ferrara.

“This is really about being able to continue to scale the company,” he said, while chatting from RSA, a security conference held this week in San Francisco. “We have been continuing to hire and expand both products and customer base and this gives us more capital to work with.”

The round also converted all the convertible debt so the company has a debt-free balance sheet.

The round included mostly new investors as well as some new money and it was primarily angels, he said.

The Oakland-based firm, which has firm roots at Carnegie Mellon University, is now more than 25 people and has hired five people in the last five weeks. The team is continuing to build its development bench as well as sales and marketing.

Wombat takes a somewhat different on cyber security. The company’s products augment traditional security systems that focus securing the perimeter and keeping people out. For Wombat the focus in employees within an organization and teaching them how to be secure and therefore less likely to unknowingly let the bad guys in.

The company already has anti-phishing and other education tools to teach people how to be safe on new networks, mobile devices, and how to handle sensitive data.

Earlier this month the company launched its latest product, called SmishGuru (it joins PhishGuru and USBGuru). This product is aimed at educating against targeted text message phishing, known as “smishing” or SMS phishing. The company is selling this way for customers to train employees that might be in a Bring Your Own Device situation.

At the security conference, Ferrara said its clear that businesses are “very concerned about the level of hacker and criminal activity and breaches and they are looking for innovative solutions to address the issues they see.”

Read the article at Pittsburgh Business Times

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