As of 2015, CipherCloud has around five years and $80 million in investments under its belt, and even the internal team couldn't provide a specific reason for attracting $50 million in Series B funding in an investment round in 2014. We're not surprised this startup has been successful so far–it punches most of the buttons on the Angel Kings investment checklist, including strong people, product, and timing.
The founder behind CipherCloud is Pravin Kothar. Kothar has plenty of experience in the technology and security space, and he's also got a history of launching successful startups. He was the founding Vice President of Engineering for ArcSight, which launched in 2000 and was acquired by Hewlett–Packard in 2010. Kothar was also involved with startup Agiliance, which garnered $24 million in investments from 2005 to 2015 and boasted an impressive growth rate of 4,909 percent from 2007 to 2010.
An experienced and established founder is one that investors can get behind, but he also needs a marketable product. CipherCloud entered the market at a time when cloud–computing itself was becoming a mainstream service, but users were still anxious about security concerns. With security an ever growing concern–and cloud computing an ever growing requirement among global organizations looking for cost–savings and efficiencies–CipherCloud's service is positioned to meet demands and psychological needs for an enormous market. No company wants to feel vulnerable to hackers, particularly those in sensitive niches. In fact, CipherCloud's first four years netted them 3 million users–including top banks, healthcare organizations, and government agencies.
CipherCloud doesn't offer a new solution; many companies in the second decade of the 21st century are bringing cloud security solutions to market. What CipherCloud does offer is out–of–the–box solutions that integrate with some of the biggest cloud software solutions on the market. The company offers security for Salesforce.com, Office 365, and Box, among others. Like Apttus, this smart startup used the tailcoats of larger organizations to get up to speed. Now that it's caught the eye of investors, CipherCloud intends to develop additional products and move into new markets.
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Ross Blankenship is the "expert on venture capital and angel investing" for startups and investments for venture deals. He is also a proven entrepreneur, and the Founder and CEO of AngelKings.com. Ross Blankenship has successfully founded several companies and now manages a Venture Capital fund focused on early stage, high growth startups in sectors such as mobile, cybersecurity, cloud computing and biotechnology. Learn more about Ross Blankenship, and how to become a successful, early investor at http://AngelKings.com.