Digital security startup MagicCube has raised $2.2 million in a seed round of funding for its software platform that promises transaction security over all mobile platforms.
MagicCube’s software, which exclusively targets the mobile apps handling sensitive user data, such as banking and shopping applications, works by embedding itself into other applications and securing the exchange of data between devices and the cloud. The software’s versatility allows it to be installed on any mobile device operating on any operating system and hardware.
"Commerce is rapidly evolving and migrating to digital channels. As innovation continues to accelerate, the traditional approach of securing devices with hardware-based solutions has become impractical and costly for the entire ecosystem,” said Sam Shawki, CEO and cofounder of MagicCube. “For smartphones, tablets, wearables and other connected devices, the best approach to secure digital transactions is to use software which is cost-effective and can be easily updated when new threats and use cases come along."
While the Sunnyvale, CA-based company has only secured the seed funding, it is already garnering attention from top players like Visa, which just signed up for the Charter Partner Program, which gives participating companies early access to the platform and allows them to model the development of specific use cases.
"Most industry efforts to secure endpoints with hardware, so far, have resulted in fragmented solutions that are extremely costly, lengthy to deploy and not easily scalable. Moreover, because hardware is platform-specific, these solutions are controlled by the few players who manufacture or own them,” said Ryan Hemingway, director at Epic Ventures, one of the seed round investors.
“MagicCube addresses these challenges with an elegant solution that allows any entity to offer consumers secured transactions on mobile devices efficiently and cost-effectively.”