Summary: Concentric AI, a data security startup, has raised $45 million in Series B funding to enhance its capabilities in identity governance, risk monitoring, and breach investigations using large language models. The company aims to expand its market reach and establish itself as a leader in the data security sector by leveraging innovative technologies and strengthening partnerships.
Threat Actor: Concentric AI | Concentric AI
Victim: Data Security Sector | data security sector
Key Point :
- Concentric AI plans to utilize the funding to improve data discovery, classification, and risk monitoring through advanced AI technologies.
- The startup aims to increase its international presence and strengthen channel partnerships, with half of its business currently coming from these partners.
- Concentric AI’s innovative use of large language models allows for contextual data analysis and automated remediation, setting it apart from traditional security approaches.
- The company is focused on metrics such as customer growth and revenue increases to track its progress following the funding round.
- Concentric AI envisions becoming a comprehensive platform for data discovery, monitoring, remediation, and investigation.
Artificial Intelligence & Machine Learning
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Next-Generation Technologies & Secure Development
Top Tier Capital, HarbourVest Support Concentric’s Path to Autonomous Data Security
A data security startup led by a former vice president of Aruba raised $45 million to enhance its capabilities around identity governance, risk monitoring and breach investigations.
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Concentric AI plans to use Series B proceeds to strengthen data discovery and classification by using large language models, said founder and CEO Karthik Krishnan. The Silicon Valley company plans to increase its market reach by further displacing data security incumbents like Varonis and Netwrix as well as expanding its international footprint and strengthening channel partnerships, Krishnan said (see: OpenText, Google, Varonis Lead Data Security Forrester Wave).
“It became obvious to us that the market need is massive, we had a product that was sufficiently differentiated in the market that could meet the requirements, and the time was now to essentially be able to scale our organization,” Krishnan told Information Security Media Group.
Concentric AI, which Krishnan founded in 2018 and has since continually led, employs 88 people and has raised $67 million in three rounds of outside funding. The company previously closed a $14.5 million Series A funding round in May 2022 led by Ballistic Ventures. Krishnan previously spent more than two years overseeing product management and go-to-market for Aruba’s security portfolio.
What Sets Concentric AI’s Approach to Data Security Apart
The $45 million raised provides the runway needed for Concentric AI’s goals over the next three to four years, supporting expansion in R&D and market reach, according to Krishnan. The funding will support scaling Concentric’s sales, marketing and partner operations to meet increased demand, support rapid growth and establish the company as an independent leader in the data security sector, Krishnan said.
“We see a massive opportunity here to be a de facto data security platform for the enterprise,” Krishnan said. “$45 million gives us the runway to hit our revenue goals over the next couple of years. All of our investors here see the opportunity to build a standalone IPO-able company in this space because it is a foundational security tech for enterprises.”
Top Tier Capital Partners and HarbourVest Partners led the funding round. CyberFuture, a global CISO consortium, also participated, offering additional expertise and credibility due to its industry vetting and commitment to the data security sector, Krishnan said.
“They are extremely deep-pocketed investors with a lot of experience investing in the enterprise space, everything from infrastructure to security to B2B,” Krishnan said. “We’re getting a lot of expertise, especially on having guided companies through the growth phase, to our board.”
Concentric AI’s use of large language models is a key differentiator, which Krishnan said allows for more nuanced data discovery and risk analysis as well as automated remediation. Unlike traditional security approaches, which use rules and patterns, Concentric’s platform applies language models to situate data in context. Concentric not only identifies sensitive data but also gives actionable remediation steps.
“We’re the first ones to bring gen AI technologies to the world of data security, where we use gen AI-based language models to help customers understand their data with context and help understand risk,” he said. “But there’s a whole lot of work that needs to continue, especially around additional things that we can do around risk monitoring to additional capabilities that we can provide around remediation.”
How Concentric AI Plans to Put the Series B Proceeds to Work
Concentric will use the money to enhance risk monitoring, advance identity governance, and build out data breach investigation capabilities. He said risk monitoring is critical for identifying inappropriate data access, while identity governance will help align actual data access with policy. Data breach investigations will leverage Concentric’s data discovery capabilities to track data breaches efficiently.
“We want to be the discovery, monitoring, remediation, and investigation engine, specifically around data,” Krishnan said. “We can be that one platform where enterprises can get all their questions answered.”
Concentric’s go-to-market strategy is focused on expanding the company’s international presence and bolstering channel partnerships. Krishnan said half of Concentric’s business now comes from channel partners, indicating strong demand and satisfaction from customers referred through the channel. This approach provides a scalable way for Concentric to reach more customers and handle higher demand.
“We’re looking to significantly build out our channel presence as well,” Krishnan said. “We’re able to engage with more partners, train them, help them with opportunity identification and expand our footprint by reaching more customers through our partner base.”
Following the Series B funding, Krishnan plans to track metrics such as customer growth, deal size expansion and year-over-year revenue increases. Profitability, though not an immediate focus, is part of Concentric’s sustainable growth approach, according to Krishnan. The company aims to continue its high-growth trajectory, tripling customer count and capturing larger market opportunities.
“We’re in a market where the number of customers looking to deploy data security products is just growing exponentially, and we’re looking to basically continue to build that out so we can meet the customer where their needs are and help satisfy that and continue to be on this growth trajectory that we’ve been on,” Krishnan said.
Source: https://www.bankinfosecurity.com/concentric-ai-secures-45m-series-b-to-expand-data-security-a-26635