Portfolio Spotlight: M12 Leads SpyCloud Series B


“Bad guys don’t break in anymore. They log in.” – Chief Information Security Officer at a Fortune 500 company.

Chew on that for a second and then ask yourself, “Am I confident that my professional and personal email accounts and passwords aren’t floating around the dark web?” And by extension, “Am I confident my employees’ work and personal credentials aren’t exposed?” We’re all human. We tend to reuse passwords, passwords that may have been contained in one of half a dozen breaches announced since the beginning of 2019, each one an opportunity for cyber criminals to cause harm – simply by logging in.

SpyCloud is solving this critical problem of account takeover by infiltrating underground communities where cybercriminals operate, recovering breached data, and informing customers when their credentials are discovered among the haul. SpyCloud recently announced a $21M capital raise and we couldn’t be more excited to welcome them to the M12 family.

SpyCloud stood out to us, not only for the massive data moat it’s amassed (60 billion assets and the largest database of plaintext passwords in the known universe) but for the way they operationalized their solution to deliver tremendous customer value. In addition to API integrations, SpyCloud works with Active Directory to drive automated password resets when compromised credentials are discovered. As part of M12’s value-add to portfolio companies, we offer unique access to strategic go-to-market resources and relationships globally, as well as connections to partnership opportunities with Microsoft.

Ultimately, we’re thrilled to lead the Series B because of the people around the table. The founding team of Ted Ross, Dave Endler, and Alen Puzic are successful, serial entrepreneurs with a proven record of leveraging their deep cybersecurity expertise to protect customers. I’m personally excited to work again with fellow Board Member Alan Kessler, after having previously invested in Vormetric at Split Rock Partners, in which Alan led as CEO to a $400M sale. I also look forward to collaborating on the Board with John Stewart, Cisco’s Chief Security, and Trust Officer. Finally, we’re joining our friends at Silverton Partners, March Capital, and Altos Ventures to help build a great company.

In a short period of time, SpyCloud has earned the trust of many Fortune 100 customers and already four Fortune 10 companies. The best part is that Ted, Dave, Alen and the rest of the SpyCloud team are just getting started. We’re thrilled to support them on this next phase of the journey!

Team SpyCloud

Team SpyCloud celebrating at their holiday party.