Fortanix, A Cybersecurity Company, Secures Capital for Confidential Computing Services
While companies (and VCs), spend billions on cybersecurity, their primary focus is on protecting endpoints or infrastructure. That’s not always the right approach in a world where — thanks to the pandemic — data is increasingly distributed across clouds, software-as-a-service apps, and storage systems. A survey of 2021 respondents revealed that 61% believed that their cybersecurity teams were understaffed.
Ambuj Kumar, CEO, and co-founder of Fortanix, told TechCrunch via email that businesses and government agencies are seeking a new way to protect their data regardless of its location, especially in the cloud. He is the CEO and co-founder at Fortanix. This company aims to separate security from network infrastructure in order to protect data even if it has been compromised. They need the protection of sensitive and regulated data throughout their lifecycle — in motion, at rest, and in use.”
Participants included Giant leap Capital and Foundation Capital, Intel Capital, and Neotribe Ventures.
Kumar, who is a salesman, believes Fortanix is one solution to the increasing challenge of data security. Some investors are in agreement. Fortanix closed today a $90 million Series C financing round, led by Goldman Sachs Growth Equity. In-Q-Tel, the non-profit strategic investor for the U.S intelligence community, and In-Q-Tel. Kumar stated that the funds will be used primarily to expand sales and marketing operations and to open new offices in Eindhoven.
“The growth rounds have significantly slowed down in the face of a wider market slowdown. Kumar stated that investors are still able to access a lot of dry powder and that companies with strong revenue profiles and a profitable business model attract a lot of attention. We are fortunate to be one of these companies. History has shown that great companies can be built in difficult economic times. Competitors don’t get funding, talent is more accessible, and customers consolidate toward stronger products.
Kumar and Anand Kashyap founded Fortanix in 2016 together. Kumar was previously the hardware design lead at Nvidia, and also the chief architect for Rambus’ cryptography department. Before joining VMware, Kashyap worked as a staff engineer.
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