The Story Behind Our Series A
“What’s your primary role?” Yoav and Barrel asked me on our first meeting.
“Making sure we have a product we can sell”, I said
“No. Try again”, they responded.
“Making sure we get some customers”, I tried.
“No. Try again”, they encountered.
“I don’t know. I give up.”
“Raise Series A”, they said cheerfully.
I said ok, and asked how much Series A should be, to which they responded “$6-8M”.
So how did we so massively exceed expectations, especially in these current economic times?
Two simple answers:
Product and People
In 2017, we did a huge amount of research on the market and realized that existing technologies were using tried and tested techniques of DLP to focus on privacy. However, customers wanted something more. Their challenge was to be informed about what they didn’t know was occurring in their environment. They wanted to know how they were storing, processing, and sharing personal data on an ongoing basis and not just on day one. Additionally, there were 2 sides to the equation: Management and Discovery.
We looked at the market, and the solutions for discovery reminded me of when I used to play “hide and seek” (yes, I am a Brit) with my older, somewhat assertive sister. We would play as long as I told her where I was hiding.
The 1st generation Privacy technologies were built around hide and seek, but with no hiding. In order for the system to tell them where the personal data is, the user had to tell their systems where the personal data is. Industry player’s attitude to discovering personal data was akin to 5-year-olds playing “hide and seek”.
So we did a large amount of testing around this basic notion, that most enterprises DON’T know where their personal data is, and they need a system to seek it out, in all places, wherever it may be. Such a system had to be tuned into the network, constantly, so Privacy practitioners can be informed of any changes to reduce the risk of non-compliance.
We have an amazing team. Unlike other technologies that outsource the development of repository scanning to third party companies, our team has created a solution that is basically 3 products in one: Network Analytics, Repository Scanning, and Management Interfaces. Our team’s background in network analytics and human identity mapping has differentiated us in the marketplace.
Due to the complexity of the technology, our Series A discussions actually only started back in Q4 2019. They started with taking some meetings with some key individuals in the VC community to assess responses to the product. We started reaching out to the VC community earnestly around Mid Jan 2020, and with a frantic (and sleepless!) 6 weeks, we were subscribed at $20m for an $8m round! This was a huge boost for the direction we were taking, and for various reasons we decided to stop at $14m.
What this means for 1touch.io in particular and Privacy regulation in general:
Now that we are deployed in many environments we have learned that our customers need more. Privacy and Security need more. Customers are looking for that holistic and accurate updated view of personal data usage, that only a network-based PrivSec technology can bring. We will be investing in the right people, to continue to develop the right product, and to deliver to the right market.
To achieve greater customer value, we will be investing in more people to deliver it in all parts of the organization. From RD to customer success, to field sales, operations, and marketing, our ambition is to continue educating the market about our second generation of Privacy Technology that tells the customer everything they need to know with unparalleled accuracy and operational ease.
We understand that we have a lot more to learn and achieve, and we are not taking our foot off the pedal. We won’t rest on our laurels. We are humbled by this investment and will continue to seek guidance from our customers and users to deliver the best PrivSec technology in the market.
To read the full press release, click here.
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*** This is a Security Bloggers Network syndicated blog from 1touch.io authored by Zak Rubinstein. Read the original post at: https://1touch.io/blog/the-story-behind-our-series-a/