dnsfilter Secures $30M Series A Funding - Cybersecurity News

DNSFilter Secures $30 Million in Series A Funding

DNSFilter, an AI-driven startup specializing in DNS protection for businesses, has successfully raised $30 million in Series A funding led by Insight Partners.

Innovative DNS-Based Threat Protection

As the company name indicates, DNSFilter delivers web content filtering and threat mitigation through its DNS service. It distinguishes itself from competitors like Palo Alto Networks and Webroot by employing unique, in-house artificial intelligence.

This AI continuously analyzes billions of domains each day, proactively identifying irregularities and potential entry points for malware, ransomware, phishing attempts, and fraudulent activities.

Proprietary AI for Real-Time Scanning

“Unlike many others, who rely on external databases, we develop and maintain our own,” explains Ken Carnesi, co-founder and CEO of DNSFilter, in a statement to TechCrunch. “Our system utilizes artificial intelligence to scan web pages in real time.”

Proven Threat Detection Capabilities

DNSFilter currently serves over 14,000 customers, including prominent companies such as Lenovo, Newegg, and Nvidia. The company asserts its technology detects threats, on average, five days earlier than its rivals.

Furthermore, it claims a 76% effectiveness rate in identifying threats originating from domains. By the close of 2021, the platform had blocked over 1.1 million threats daily.

Growth Fueled by Remote Work Trends

The past year has witnessed substantial growth for DNSFilter, driven by the widespread adoption of remote work and the concurrent surge in cyberattacks and ransomware incidents.

Customer engagement increased eightfold, the global team expanded to over 50 individuals, and a partnership was established with N-Able, a Canadian software firm, to access the channel market.

Industry Validation and Strategic Appointments

“DNSFilter’s impressive growth and efficient customer acquisition demonstrate the advantages and simplicity it offers compared to established players,” noted Thomas Krane, principal at Insight Partners, who now serves on DNSFilter’s board.

“The traditional, hardware-focused approach to network security is giving way to solutions that integrate seamlessly at the device level and accommodate distributed workforces.”

Expert Guidance and Enterprise Focus

Prior to this funding round, Dmitri Alperovitch, co-founder and former CTO of CrowdStrike, joined DNSFilter’s board. Arthur Ventures, who led the seed funding round, also participated in this latest investment.

Carnesi believes Alperovitch’s expertise will be instrumental in tailoring the technology for enterprise-level clients. The company is now prioritizing mid-market and enterprise customers.

Strengthening the Leadership Team

The company also welcomed Jen Ayers, formerly a vice president at CrowdStrike, as its chief operating officer. Her experience managing a managed threat hunting team will be valuable as DNSFilter expands its domain intelligence capabilities.

Future Expansion and Innovation

The newly acquired funds will be used to significantly increase the company’s workforce, with plans to hire over 80 new employees globally within the next year.

“We believe there’s considerable untapped potential for enhancing security through DNS,” Carnesi stated. “We intend to develop capabilities that will redefine what’s achievable via DNS.”

Strategic Acquisitions on the Horizon

Following the acquisition of Web Shrinker in 2018, DNSFilter anticipates further acquisitions to accelerate development in key areas. “We are actively evaluating potential companies to acquire and expedite our progress,” Carnesi added.