Financial giant Blackstone is set to invest $10 million in the Israeli cybersecurity startup Adaptive Shield through its growth fund BXG. The deal is part of a strategic agreement between the two companies, aiming to integrate Adaptive Shield’s technology into Blackstone’s operations. Blackstone is already a client of Adaptive Shield, and this investment comes after a successful partnership between the two firms. The funding round was conducted at a higher valuation than Adaptive Shield’s previous round, indicating the company’s growth and potential.Adaptive Shield was founded in late 2019 by Maor Bin and Jony Shlomoff and currently employs 75 people in Tel Aviv and the U.S. In October 2021, the company raised $30 million in a Series A round led by Insight Partners, along with other investors such as Okta Ventures and Vertex Ventures Israel.The rise in the use and reliance on Software-as-a-Service (SaaS) applications in organizations has led to an increase in cybersecurity challenges. As more businesses adopt these applications to optimize their operations, they have become prime targets for cyber attackers. Adaptive Shield addresses these challenges by providing solutions that monitor and control all aspects of security in cloud environments, continuously identifying and mitigating attacks.The strategic investment from Blackstone underscores the success of Adaptive Shield’s offerings and highlights its innovative capabilities as the only SaaS security platform that integrates with over 130 applications, covering a vast SaaS attack surface. Maor Bin, co-founder, and CEO at Adaptive Shield expressed confidence in the company’s growth trajectory and expansion plans, particularly with the support of Blackstone. The investment will enable Adaptive Shield to keep pace with the ever-evolving cybersecurity threats.Blackstone’s Chief Security Officer, Adam Fletcher, emphasized the importance of staying ahead of attackers in building a world-class cybersecurity program. He mentioned that Blackstone has already partnered with Adaptive Shield to continuously monitor the security posture of critical SaaS applications used across the organization, providing an extra layer of protection from potential cyber threats. The financial giant believes in Adaptive Shield’s mission and is excited to support the company’s growth as it enters its next stage of development.This investment comes on the heels of another significant funding round by Blackstone, which saw the firm investing tens of millions of dollars in the Israeli fintech company Stampli. Blackstone’s activities in Israel are managed by Yifat Oron, with Vertex Ventures, one of Adaptive Shield’s early investors, being led by Yanai Oron, Yifat Oron’s brother.As organizations increasingly rely on cloud-based applications and services, robust cybersecurity measures become essential to safeguard sensitive data and protect against potential cyberattacks. The partnership between Blackstone and Adaptive Shield demonstrates the growing recognition of the importance of SaaS security in today’s business landscape. By integrating Adaptive Shield’s innovative technology, Blackstone aims to enhance its cybersecurity program, protect its brand and reputation, and secure its investors and intellectual property from cyber threats.
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October 20, 2023
October 20, 2023