Microsoft Corporation (NASDAQ:MSFT) is leading a $21.25 million investment in Synack, a cyber-security startup that hires hackers to search for bugs in clients’ software.
Partners in the project
Hewlett Packard Enterprise and Singtel Venture also joined in the round. Other former investors included GGV capital’s Alphabet Inc (NASDAQ:GOOGL) and Kleiner Perkins Caufied & Byers. The current Synack total fundraising is now about $55 million.
How does it operate?
Synack operates in a similar way to Uber for penetrating testers hence facilitating private bug bounty programs targeted at high-end customers. The company operates a remote network of vetted hackers for hire who coordinate controlled “red team” operations, identifying and reporting weaknesses in the customers’ digital defenses.
Synack just like its rivals, Bugcrowd and HackerONe, makes use of crowded sourced researchers from around the world hence giving the defenders an edge against the attackers. The company also provides vulnerability-scanning software labeled Hydra to assist organizations in finding chinks in their systems.
Comments from the executive
Jay Kaplan, CEO of Synak and the former counterterrorism operative at National Security Agency stated, “The only way we’re going to beat the Russians attacking us is to leverage the Russians in this methodology.” Kaplan is the co-founder of the firm in alliance with Mark Kuhr who is currently the Tech chief at Synack and another NSA alumni in the year 2013.
Goals of the firm
Synack hopes to expand into the international market including the Asia Pacific region and Europe. It views the move as a great go to the market opportunity as they continue expending the customer base.
Its main customers include the IRS and the Defense Department. According to Kaplan, the federal government incurs limited participation to individuals from allied nations in its programs.
What works for the company?
Synack enjoys great support from the industry which is a great indicator that the company is making progress in the worldwide cyber security. Nagraj Kashyap the corporate vice president of Microsoft commented about the company stating that it is definitely one to look out for.
Microsoft closed at $65.48 on Tuesday after declining by $0.05 or 0.08%. Hewlett closed at $18.18 after a decline of $0.12 or 0.66%. Alphabet closed at $839.88 after declining by $1.82 or 0.22%.
