- The startup Cerby is emerging from stealth mode with a $3.5 million seed funding round led by Bowery Capital.
- Cerby addresses “shadow IT,” which refers to the problem of employees acting on their own against official company policy, including by unauthorized access to enterprise accounts.
- The pitch deck below shows how Cerby snagged its seed round in time to address social media account vulnerabilities before November elections.
- Visit Business Insider’s homepage for more stories.
Cybersecurity startup Cerby is emerging from stealth mode on Thursday with a $3.5 million seed funding round led by Bowery Capital. Cerby tracks “shadow IT,” which refers to the problem of employees acting on their own against official company policy, like through unauthorized access to enterprise applications or social media accounts.
“Shadow IT has emerged because enterprise users are able to onboard apps faster than IT staffers can discover and secure them,” says Bel Lepe, co-founder and CEO of Cerby. “If social media has taught us anything, it is that we as humans like to share. Unfortunately, when it comes to sharing sensitive data and identities in an enterprise context, it is rarely done safely. This is where we believe existing security tools haven’t kept up.”
The data backs that up. According to Verizon, 67% of data breaches are caused by credential theft, errors in handling accounts, and social media attacks.
The startup’s initial launch will focus on how employees share log-in credentials in ways that are often at odds with enterprise best practices, including employee access of brand social media accounts at news organizations and political campaigns, just in time for the US elections in November.
“In a world where what we read on social media has the potential to be an influential news source, ensuring only trusted actors have access to the accounts behind those posts is critical,” says Cerby advisor and chief security officer of public cloud at the cybersecurity company Palo Alto Networks, Matt Chiodi. “Cerby provides a unique way to ensure the entire chain of custody for access is secure and completely auditable.”
Cerby’s software lets employees share access to accounts without sharing passwords or using password managers. Instead they share a collaborative tool that allows each employee to access accounts securely while the company oversees access.
Mike Brown, managing partner at Bowery Capital and a Cerby board member, says his investment will help Cerby to “build a transformational security company that can disrupt how enterprises approach sharing corporate identity, data, and resources.” Other investors include AV8 Ventures, Global Founders Capital, and the Incubate Fund US.
Cerby is currently in closed beta with select Fortune 1000 customers.
Here’s the pitch deck Cerby used to raise its seed round: