PhishMe Raises $42.5 Million In VC Funding To Protect More Companies

Phishing scams have become commonplace, costing companies countless amounts of money. Cybersecurity startup PhishMe is aiming to help companies thwart those attacks and just closed a round of funding to aid it in its plight.

PhishMe, which was founded in 2011, raised $42.5 million in a Series C round of funding led by Paladin Capital Group. Another investor in the round was Bessemer Venture Partners. PhishMe’s tools enable companies to show employees what malicious phishing emails look like so they can prevent themselves from clicking on a phishing link. With the tools, employees are also able to easily report emails that may be questionable to the right security teams in the company.

“Institutional capital has become more selective for cybersecurity companies over the last three quarters. We are fortunate to have attracted interest from the most highly regarded investment firms in the world. This is testament to our strong business model and the investment community’s confidence in our ability to execute and maintain expansive growth for years to come,” said CEO and Cofounder Rohyt Belani in a press release announcing the round of funding. “This strategic funding will put us in a position to drive further innovation in email security and phishing defense strategies, as well as explore inorganic growth opportunities.”

While PhishMe isn’t the only startup in the security space aiming to help companies prevent data breaches and hack attacks, Alex Ferrara, a partner at Bessemer Venture Capital, said the firm invested in PhishMe because of the potential behind the company’s business model. “The most damaging cyberattacks almost always involve phishing or spear phishing attempts, and that is why empowering the human element or employees to detect these phishing campaigns has become a top priority for modern enterprises. We’re extremely pleased to have invested in the company and look forward to working alongside the management team and supporting their growth plans,” he said.