- CryptoMove, a cybersecurity startup led by a father-and-son team, just raised $6 million in a Series A funding round.
- The round was led by Social Capital, a venture capital firm founded by ex-Facebook executive Chamath Palihapitiya.
- Social Capital was intrigued by CryptoMove’s approach to security, which protects corporate data in part by keeping it in frequent motion, playing a kind of game of digital hide-and-seek with potential hackers.
In 2017, venture capitalists invested more than $7.6 billion into cybersecurity startups, helping flood the marketplace with an assortment of new software built to prevent malicious attacks before they happen – or fix them once they do.
Although CryptoMove was one of those cybersecurity startups that got funded last year, Mike Burshteyn, its CEO, doesn’t consider his firm to just be part of the pack. CryptoMove’s technology is superior to that of other cybersecurity companies and could change the way cybersecurity is done forever, he said.
“It’s certainly a crowded space,” Burshteyn said. “I don’t think there’s any question that security is overfunded. But we have no control over the timing of our invention.”
While CryptoMove’s name might make it sound like it’s yet another cryptocurrency startup, the company’s technology has nothing to do with bitcoins or blockchains. Instead its system is designed to secure companies’ data.
CyptoMove’s system breaks up data into small pieces and puts it into containers that are like rows of virtual vaults, Burshteyn said. Each vault contains a different piece of the data puzzle, and the system keeps the vaults moving at all times, rather than letting the data just sit in one place. Together, the techniques help keep data secure by making it difficult for the bad guys to figure out how to break in and steal the information.
The company’s software can run both on servers in corporate data centers and also on public cloud services.