Australian-founded insider threat protection company Dtex Systems is making a run at the United States market after closing a $15 million Series A funding round co-led by Norwest Venture Partners and Wing Ventures.
In its 15 years of operation, Dtex Systems has seen strong market traction in the Asia-Pacific and Europe, the Middle East, and Africa markets, with the financing round marking the company's entry into the US market.
Dtex Systems was founded in Australia in 2000 by CEO Nohan Koo to develop endpoint security software for the Australian government, after receiving funding from the government's technology innovation program.
The company's product suite is designed to prevent digital security breaches from originating within an organisation, while protecting employee privacy.
After establishing itself in Australia, the company expanded into Asia and Europe, finally settling on London as a base for its headquarters. Now, following the capital-raising effort, Dtex Systems has moved its corporate headquarters to San Jose, in California's Silicon Valley.
Dtex said it plans to use its new cash injection to expand its reach and widen the availability of its endpoint security offering, which is aimed at providing enterprises with visibility across all endpoints to help prevent intellectual property theft, malicious insider attacks, and the accidental disclosure of sensitive materials.
According to Koo, Dtex Systems' entry into the US market comes at a time when companies' legacy systems are no longer providing them with the protection they require.
"Companies have hit a wall when it comes to using legacy technologies to stop insider threats," said Koo. "Pulling information from traditional security data sources doesn't provide the hard evidence required to take immediate action -- an audit trail must be collected directly from every endpoint.
"Dtex has adopted a 'trust but verify' approach, which enables people-centric analytics to secure the endpoint without compromising employee privacy," he said.
Former Vodafone CTO and long-term Dtex Systems investor and advisor Chris Burke said that enterprises are investing greater budgets into security systems like that designed by the company.
"Global organisations have invested heavily to lock down the perimeter to keep bad actors out, and now they are laser focused on securing the endpoint and devoting budget dollars to this area," he said.
Wing Ventures founding partner Gaurav Garg believes that the company is well positioned to take on the growing market share in this area, saying that Dtex has "cracked the code".
"[Dtex has] developed a lightweight, scalable endpoint solution that preserves end-user privacy, yet provides fine-grained monitoring and control to prevent both malicious and accidental insider threats," he said.
Dtex's move to the US West Coast follows moves by another Australian digital security company to establish itself on the country's East Coast.
In November last year, Australian data security firm Covata listed on the Australian Securities Exchange via a reverse takeover. It intended to use some of the funds raised to help it ramp up operations at its second headquarters in Reston, Virginia, where a number of potential clients in the US finance and government sectors are based.
In June, Covata CEO and executive director Trent Telford said in a blog post that he would move to the US to take a full-time role in helping the company expand in North America.
"Being in the US will allow me to interact daily with our prospects, customers, and partners, so we can shape the product direction to address their specific requirements," said Telford in November.