DTEX Systems raises $50m to disrupt insider risk management market through AI-enabled innovations

DTEX Systems raises $50m to disrupt insider risk management market through AI-enabled innovations

Published: 07-03-2024 13:21:00 | By: Pie Kamau | hits: 2135 | Tags:

DTEX Systems, the insider risk management pioneer, announced the closing of  $50 million in Series E funding. CapitalG, the independent growth fund of Google’s parent company Alphabet, led the new investment round, bringing DTEX Systems’ total funding raised to $138 million. The funding will be used to expand the company’s U.S. engineering team and grow its go-to-market (GTM) operations globally, accelerating its mission to proactively protect global organizations from insider threats.

These new funds will continue to fuel significant company momentum and accelerate DTEX’s application of large language models (LLMs) and behavioral science research to disrupt the insider risk management market. In the last year, DTEX doubled its ARR growth rate and closed its highest-ever number of $1 million+ deals. This includes the largest deal in company history with a leading Financial Services company that deployed the DTEX InTERCEPTTM platform enterprise-wide, covering more than 800,000 user devices and mission-critical servers. Customer wins spanned multiple industries, including energy, mining, healthcare, banking and finance, technology, media, pharma, telecommunications, federal agencies and other critical infrastructure entities. The company also expanded its footprint in the public sector market, securing a multimillion-dollar deal with a major U.S. government agency that spans over 100,000 endpoints. To support this rapid growth, DTEX expanded its C-suite with the appointment of Marshall Heilman as CEORajan Koo as CTO, and Dave Salverson as CFO.

James Luo, Partner, CapitalG: "Our investment in DTEX comes at a time when enterprises worldwide are increasingly reprioritizing their security investments in order to address the costs and impact of insider risks. At the same time, the market is underserved by legacy technologies that don’t provide visibility into the behavioral nuances that are essential to understanding and proactively mitigating both malicious and unintentional insider risks. DTEX takes a differentiated approach to mitigating insider risks and has a proven record of success as the most innovative and effective solution on the market. We look forward to partnering with the DTEX team to support the company in its next phase of growth.''

Insider risk management has quickly become one of the top priorities for business leaders today. Seventy-seven percent of organizations report they have or are planning to start an insider risk program and nearly 50% are increasing spending. According to DTEX and Ponemon Institute, 75% of insider incidents are non-malicious due to negligent and mistaken employees or exploitation by external threat actors. Against this backdrop, organizations increasingly acknowledge the need to focus on the human element to shift from reactive to proactive security and prevent unnecessary damages.

Since its inception, DTEX has remained hyper-focused on leveraging behavioral science to help organizations better understand the human element impacting their security risk posture. This unwavering commitment has empowered hundreds of global enterprises to develop more effective and proactive insider risk management programs, without infringing on employee privacy.

This investment closely follows the launch of DTEX Ai3 Risk Assistant, the newest enhancement to the DTEX InTERCEPT platform. Aileverages generative AI, to simplify complex insider risk tasks typically reserved for the most highly trained investigators. By democratizing data analysis, it enables more eyes and know-how to be part of safeguarding an organization's digital assets. Underpinned by its existing behavioral science and AI/ML models, these new funds will empower the engineering team to explore adjacent disciplines to continue enhancing the platform and increase return on investment (ROI) for all customers.

Marshall Heilman, CEO, DTEX Systems: ''Insider risk is one of the most prevalent and insidious threats facing modern companies and governments, making it a matter of national security. DTEX has been instrumental in enabling critical infrastructure, commercial and government organizations to mitigate insider risk, while also protecting employee privacy. We are thrilled to join forces with CapitalG, renowned for their selective investments that have propelled companies like CrowdStrike and Zscaler to the top of their fields in cybersecurity. This funding underscores their confidence in DTEX's potential to lead the Insider Risk Management space, marking a significant milestone in our journey."