Cybersecurity Startup VMRay Receives $34 Million Investment

Germany-based cybersecurity startup VMRay has completed a $34 million series B round to support the expansion of its advanced threat detection and analysis services into new target markets. The round is led by Tikehau Capital, an alternative asset management firm, which participated through its subsidiary Tikehau Ace Capital and its European cybersecurity growth fund. Tikehau is joined by two of VMRay's existing investors - German public private partnership High-Tech Gründerfonds and venture capital firm eCapital - as well as new partners NRW.BANK and Gründerfonds Ruhr.

VMRay is led by Dr. Carsten Willems, pioneers in malware analysis and detection, and Dr. Ralf Hund, known for pioneering hypervisor-driven virtual sandboxes that mimic the user's IT environment and the impact of potential malware risks. Since then, the basic sandbox technique has matured through the use of machine learning, which is increasingly used to automate the detection of new malware threats. Malware is a broad term for any malicious program installed on IT systems. It is causing enormous damage to corporate IT everywhere from banking transactions to secure government data and even medical patient records.

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Background of the Investment

Observers believe that traditional malware attacks such as phishing have declined in importance this year, as attackers turn to less protected entry points such as IoT and email. This makes machine learning a vital component in enterprise malware cybersecurity, allowing organizations to neutralize emerging threats in advance. VMRay's cybersecurity algorithms and intelligence are designed to support human cybersecurity professionals, who typically work in SOCs (security operations centers).

Willems said in a statement: "The cyber threat landscape is undergoing profound change and with the increasing volume and sophistication of new threats, our customers face new challenges." The series B capital is expected to help VMRay introduce new products based on its core automated threat analysis technology, which will allow VMRay to join forces with customers in a broader market segment. Commenting on High-Tech Gründerfonds' perspective on the deal, investment manager Dr. Ulrich Schmitt said:

Augustin Blanchard, Executive Director at Tikehau Capital, said: