JULY 7, 2021

Chrysalis Investments Invests in Deep Instinct

The Company is pleased to announce an investment of $67 million in the US based, cybersecurity company Deep Instinct Limited.

[Reposted from the Chrysalis Investments Limited website]

The Company is pleased to announce an investment of $67 million in the US based, cybersecurity company Deep Instinct Limited. This investment represents a second close to Deep Instinct's recently announced Series D funding round of $100 million which was led by BlackRock, with participation from Untitled Investments, The Tudor Group, Millennium, Unbound, and Coatue Management.

The investment consists of both an issuance of new equity from Deep Instinct and an acquisition of shares from existing shareholders. The additional investment of new equity means that Deep Instinct has raised approximately $240M to date and will enable it to significantly expand its go-to-market capabilities, while at the same time increasing its best-in-class deep learning research and product development groups.

Richard Watts (co-portfolio manager) comments: "We have spent considerable time analysing the cybersecurity landscape and believe that Deep Instinct has developed best-in-class technologies. Deep Instinct's cybersecurity platform utilises end-to-end deep learning to specialise in threat prevention, making it the most efficient and effective cybersecurity framework in the market. This technology, focused on prediction and prevention, is likely to be hugely disruptive, given its advantages over more prevalent Endpoint Detection and Response (EDR) solutions.”

"With cyberattacks continuing to be a significant risk for enterprises, including the recent spate of ransomware, we believe Deep Instinct's technology could prove to be game changing in the industry. We are delighted to be making this investment and look forward to working with Guy Caspi (CEO) and the management team as they execute their aggressive growth plans for 2021 and beyond."

More information can be found here.

About Deep Instinct
Deep Instinct is the first company applying end-to-end deep learning to cybersecurity. Deep learning is inspired by the brain’s ability to learn. Once a brain learns to identify an object, its identification becomes second nature. Similarly, as Deep Instinct’s artificial deep neural network brain learns to prevent any type of cyber threat, its prediction capabilities become instinctive. The company’s confidence is reflected by providing both the industry’s first false positive warranty and the industry’s largest ransomware warranty, backed by Munich Re Group. Their zero-time cybersecurity solution stands on top of the only deep learning framework purpose-built for cybersecurity, allowing Deep Instinct to process file-based threats faster than other endpoint solutions. More specifically, their unmatched deep learning approach offers:

Accuracy – Deep Instinct reduces false positives to 0.1% or less, compared to an industry average of 26%. A June 2021 survey revealed that 62% of SecOps professionals feel that threats in their company could get missed due to the overwhelming volume of false positives. while 86% believe the tools driven by data science (AI/Machine Learning/Deep Learning) will make a significant impact in preventing unknown threats and reducing false positives*.

In addition, as the model is trained to look and detect like a human, it prevents >99% unknown threats, such as first-seen malware, zero-days, ransomware, and APTs (advanced persistent threats), as well as known threats. To the best of the company’s knowledge, no Deep Instinct customer has suffered a successful ransomware attack since the start of the pandemic.

Speed – the low (<1% CPU) computational impact of the technology makes it the most efficient and effective cybersecurity solution in the market, with a sub 20 millisecond response time. Platform-agnostic, Deep Instinct can be quickly deployed across an organisation to deliver multi-layered protection with negligible latency.

Model longevity – unlike many other providers that need to update their platform monthly, Deep Instinct’s “brain” requires only 1-2 updates per year, and remains highly effective after many months, ensuring offline scanning remains effective.

Impact – A study by leading analyst Forrester Consulting showed an ROI of 446% over a 3 year period, with payback to the business visible in less than 3 months.

Deep Instinct prides themselves on being able to predict and prevent threats, rather than an Endpoint Detection and Response (EDR) solution that is more focused on response, which in many cases is too little too late. Deep Instinct prevents malicious files from ever entering an enterprise, thus substantially reducing the time and cost required to track trace, and rectify any infections.

The company’s confidence in its technology is reflected in its provision of both the industry’s first false positive warranty, and the industry’s largest ransomware warranty, backed by Munich Re Group.

* ”Voice of SecOps Report 2021”, by Hayhurst Consulting, commissioned by Deep Instinct, June 2021