San Diego-based CyberFlow Analytics Inc., a newly formed cybersecurity company, raised $2 million from Toshiba America Electronic Components Inc. (TAEC).
CyberFlow now has $2.6 million in initial funding to find novel ways to protect the intellectual property of enterprises from corporate espionage and Advanced Persistent Threats (APTs).
Dr. Hossein Eslambolchi, former LonoCloud chief strategy officer, and Tom Caldwell, former CEO and president of LonoCloud, spearhead CyberFlow.
Its Software as a Service (SaaS) increases network intelligence to create an early warning system for cyberattacks to networks before they disable, destroy or steal data.
“The evolution of big data analytics in the enterprise presents a large market opportunity both for TAEC and companies like CyberFlow Analytics, especially for next-gen security applications on large data flows," said George Bouchaya, vice president and chief technology officer, Institute of Strategic Storage Planning & Investment for TAEC.
TAEC’s dollars will help CyberFlow Analytics develop and commercialize software that analyzes large amounts of streaming network data to better protect companies’ intellectual property, and respond swiftly to a dynamic threat landscape.
Companies face various threats these days, from stealth malware introduced via personal mobile devices to sophisticated systemic attacks.
“A strategic investment from a company such as TAEC shows the magnitude of the problem companies are incurring from APTs,” said Eslambolchi, chairman and CEO of CyberFlow Analytics and former chief technology officer of AT&T.
CyberFlow expects to close on a $4 million seed round by November, which includes TAEC's investment and $600,000 from angel investors.
CyberFlow will be working with early beta customers to test the product and targets a commercial release of the SaaS solution by mid-2014.
The partnership with the Japanese tech giant is also important because it will enable CyberFlow to access their global distribution channels as one of their cybersecurity solutions.
"It will provide us the capital to grow and add new jobs in San Diego and build a world class team," added Caldwell, president of CyberFlow.
Cybersecurity is one critical area the hard-hit defense budget is not slashing. Some 90 percent of U.S. companies were hacked in 2011.
San Diego is upping its game in the space with CyberHive, a new incubator for security-focused startups, which opened downtown earlier this year.