MOUNTAIN VIEW, CA--(Marketwired - Jan 13, 2016) - Shape Security today announced it raised $25M in Series D funding to accelerate deployments of the Shape Botwall Service with customers across the globe. With this funding, Shape has raised $91M in total and now counts many of the largest enterprises in the world as customers. Beijing-based Northern Light Venture Capital joined the round to assist Shape with expansion into China.
"There is a highly increasing demand in China's e-commerce market for bot detection and corresponding services," said Feng Deng, founder of Northern Light Venture Capital and previously the founder of Netscreen (acquired by Juniper). "We invested in Shape because we believe the botwall product and service could be an excellent complementary solution together with products from other network and endpoint security vendors."
Lead investor in the round Baseline Ventures, Northern Light and Epic Ventures join existing investors Kleiner Perkins Caufield & Byers, Venrock, Norwest Venture Partners, Google Ventures, Eric Schmidt's Tomorrow Ventures and other prominent investors in this round.
"I've been impressed with the Shape team for a long time," said Steve Anderson of Baseline Ventures, whose track record of successful investments includes Twitter, Instagram, and others. "Our discussions with Shape's customers, who are among the largest enterprises in the world, revealed an unprecedented level of efficacy against attacks that were getting through all other security products."
Shape is addressing the most expensive and fastest growing issues in security
Shape's customers include top global airlines, top US banks, top insurers, major federal government agencies, and several of the largest retailers in the world. Shape's technology protects their web and mobile apps against attacks, like account takeover, that are enabled by botnets and other forms of automation. These automated attacks are growing rapidly, now accounting for more than half of all traffic to the login pages of major websites, and bypass products that most enterprise use, like WAFs, DDoS and fraud controls, and IDS/IPS.
"Cycling through user IDs and passwords at various websites, such as online banking or credit card portals... these massive automated account takeover attacks have become much more sophisticated and have escalated substantially, according to our clients, with big pickups in such attacks during and right after the 2014 holiday season," wrote Avivah Litan, VP Distinguished Analyst at Gartner. "Some report that such scripted attacks against large online sites doubled in the first two months of 2015."1
Mobile product a powerful extension of the platform
The Shape Botwall Service for Mobile is also now widely deployed, protecting more than 10 million users who regularly make mobile payments. The flagship customer for Shape's mobile API protection product has one of the top 5 largest mobile commerce apps in the world.
"We have grown tremendously in the last year, adding customers in new industries, and demonstrating that a platform for comprehensive protection against automated attacks is the most important missing piece of security for the world's largest companies," said Derek Smith, CEO of Shape Security. "Attackers are constantly evolving, but we are able to stay ahead of them successfully. Our new funding will allow us to take our proven approach and scale it to other major markets around the world."
About Shape Security
Shape Security stops automated web and mobile application attacks, like credential stuffing, content scraping, and application-layer DDoS, that bypass existing defenses. The Shape Botwall Service, available in the cloud or on-premises, protects more than 350M accounts on behalf of Fortune 500 organizations. Invisible to people but impenetrable to bots, Shape protects the world's largest banks, airlines, retailers and government agencies. Shape Security is headquartered in Silicon Valley and backed by Kleiner Perkins Caufield & Byers, Norwest Venture Partners, Venrock, Baseline Ventures, Google Ventures, and host of other prominent investors.
1Gartner, "Best Practices and Success Stories for User Behavior Analytics", Avivah Litan, March 4, 2015.