Tessian raises $65M to advance security at the human layer

The Series C round was led by March Capital alongside existing investors Balderton, Latitude, Sequoia Capital and Accel, and new investor Schroder Adveq. With the new funding, Tessian will expand its platform’s capabilities, helping companies replace their secure email gateways and legacy data loss prevention solutions.

Fraser, through its partners and affiliates, made an early commitment to Tessian, participating in pre-Seed, Seed and Series A rounds, and serving on the Company’s board 2015-16.

London – May 25, 2021. Tessian raises $65M Series C to advance security at the human layer. The round was led by March Capital alongside existing investors Balderton, Latitude, Sequoia Capital and Accel, and new investor Schroder Adveq.

Tessian is pioneering a new approach to cybersecurity and defining a new category of security software called Human Layer Security. Today, 90% of today’s data breaches are caused by some form of human error because, for decades, cybersecurity software has focused on the machine layer of an organization and not the most vulnerable asset: the people.

While organizations have traditionally relied on training programs or restricting people’s access to data and systems to overcome the so-called “people problem” in security, Tessian uses machine learning to stop data breaches and security threats caused by human error - without disrupting employee workflow. It builds Behavioral Intelligence Models, tailored to every employee, by analyzing individuals’ communication patterns and behaviors online. Tessian uses the models to automatically detect security threats and prevents them from turning into breaches by notifying the employee of the risk in-the-moment. Over time, these alerts help employees improve their security behaviors.

Today, Tessian secures people on email - where they spend over 40% of their time at work - and automatically prevents threats such as phishing, business email compromise, data exfiltration and accidental data loss. After deploying Tessian, enterprises see, on average, an 84% reduction in data exfiltration and phishing simulation click-through rates drop to less than 1%.

The need for greater visibility of human-activated security risks, and mitigations of these threats, was brought into sharp focus last year following the shift to remote work. Research revealed that employees were less likely to follow safe data practices when working from home, while the number of phishing attacks doubled in 2020.

In fact, in the last year, Tessian tripled its Fortune 500-level customer base as enterprises required a solution that could protect them against human layer security threats. Tessian now has approximately 350 global customers across the legal, financial services, healthcare and technology sectors including Affirm, Investec and RealPage.

With the new funding, Tessian will expand its platform’s capabilities, helping companies replace their secure email gateways and legacy data loss prevention solutions, and will soon expand beyond email to secure other interfaces like messaging, web and collaboration platforms. Tessian will also use the funding to triple its rapidly growing employee base, with a particular focus on growing its sales team in North America.

About Fraser

We are a dedicated M&A advisory and investment firm, partnering with leaders in Europe’s technology sectors to unlock next levels of growth and success. Based in Berlin, London and Chicago, we advise entrepreneurs, senior management and boards on their most important strategic decisions and transactions. Alongside our clients and partners, we also invest into selected opportunities. For further information, please visit www.fraserfinance.com.