Ghost Security Emerges from Stealth to Defend APIs and Apps from Cyber Attackers

In a significant development for the cybersecurity landscape, Ghost Security has emerged from stealth mode with a substantial investment of $15 million in combined funding from prominent venture capital firms. The company’s founders have described it as an ‘app security’ firm, with a valuation of $50 million.

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The Growing Importance of App and API Security

In today’s digital age, apps and APIs are at the core of organizations, providing essential information to employees and customers alike. However, they have also become increasingly vulnerable to cyber threats. According to Salt Security, malicious API usage grew 681% from December 2020 to December 2021. Similarly, Pradeo Labs research indicates that mobile devices are frequently targeted by cybercriminals through apps.

Ghost’s Unique Approach to App and API Security

Ghost Security takes a ‘data science’ approach to addressing the challenges posed by app and API security. While keeping the details of its technology under wraps, CEO Greg Martin emphasizes the company’s focus on delivering visibility and risk protection for apps and their dependencies, including services and APIs, in both cloud and on-premises environments.

A New Approach to Securing Modern Applications

Martin highlights that existing approaches and application security solutions are no longer effective, given the rapid growth of modern applications. He emphasizes that Ghost is rethinking the approach to securing these applications from the ground up.

Ghost’s Founders: A Team with Considerable Expertise in Cybersecurity

The company’s co-founders have extensive experience in cybersecurity. Josh Larsen, CTO, was an engineering manager at Symantec before joining Check Point as an account manager and co-founding Blackfin Security Group, which Symantec acquired in 2015. Eric Cornelius, chief product officer, was the deputy director of the U.S. Department of Homeland Security’s control systems security program and a chief product architect at BlackBerry.

A Competitive Landscape

Ghost faces stiff competition from other companies offering API security solutions, including Salt Security, Noname, Traceable AI, 42Crunch, Cequence, Astrix Security, and Enso Security. However, investors are optimistic about Ghost’s prospects.

Investors’ Confidence in Ghost

DNX Ventures managing partner Hiro Rio Maeda said in a statement: "The surge in adoption of applications, APIs, and microservices represents great growth potential for businesses but also introduces many new attack surfaces. A better approach to securing these assets is needed, and Ghost is well-positioned to address that challenge."

The Investment

The $15 million investment comes from 468 Capital, DNX Ventures, and Munich Re Ventures. This significant funding will enable Ghost to expand its team, build its product, and launch pilots with potential customers.

Conclusion

Ghost Security’s emergence from stealth mode marks an exciting development in the cybersecurity landscape. With a unique approach to app and API security, the company is poised to address the growing challenges posed by modern applications. Despite facing competition, Ghost has attracted significant investment from prominent venture capital firms. As the demand for robust app and API security solutions continues to grow, Ghost is well-positioned to capitalize on this trend.