Terbium Labs, a Baltimore startup that scans the dark web for stolen information, has raised $6 million to expand its reach to businesses.
The financing was led by Glasswing Ventures, a Boston-based venture capital firm, and brings Terbium’s total funding to $15 million. The investment will allow Terbium to tap into what it sees as a growing global market for advanced cybersecurity services, as data breaches become increasingly common.
“Post-Equifax, there’s a lot of concern about this in the marketplace,” Danny Rogers, co-founder and CEO of Terbium Labs. “What’s changing now is more and more companies are realizing this is something they need.”
Using artificial intelligence, Terbium constantly searches for clients’ sensitive information on the dark web, a primary market for cyber criminals to sell stolen information. The company codes clients’ data in a way that allows Terbium to determine it has been compromised without accessing any of the data itself.
Large enterprises have long invested heavily to protect themselves against data breaches, but even so, often don’t find out about a breach until the data is long gone.
Terbium’s approach aims to quickly identify and retrieve stolen information.
Middle-market companies, such as regional banks and health systems are increasingly seeking out this type of protection as well, Rogers said, as hackers begin to target them more frequently.
“For every big breach you see in the news, there’s probably five times the amount of data being extracted from the middle market,” Rogers said.
The new investment will allow Terbium to expand its sales and marketing and begin building out operations to serve European clients.
The company employs 20 people and Rogers said he expects to increase the staff by 50 percent over the next year.
“I’ve been looking for a company like Terbium for many years,” said Rick Grinnell, founder and managing partner of Glasswing Ventures.
Glasswing Ventures focuses on companies using artificial intelligence. Terbium appealed to the firm as an investment because of the potential quickly grow the company’s reach, he said.
Most companies offering such services rely on human analysts to catch stolen information, which limits growth potential.
Artificial intelligence, makes Terbium’s approach easier to scale up and more accessible to companies with varying budgets for cyber security, Grinnell said.