Cybersecurity firm Lumu raises $30M to detect network intrusions


Lock in the middle of a network of applications illustrating cloud security
Image Credits: Traitov / Getty Images

Lumu, a startup that helps enterprises identify and isolate security compromises, today announced that it raised $30 million in a Series B round led by Forgepoint Capital, $6 million of which is debt.

Ricardo Villadiego, Lumu’s founder and CEO, says that the new cash will be put toward growing Lumu’s sales team in the U.S., supporting its go-to-market strategy and increasing the startup’s investments in R&D.

“Lumu‘s primary objective is to ensure that its … solution reaches more security teams that may have limited resources but require effective solutions to tackle the complexities of today’s threat landscape,” Villadiego told TechCrunch in an email interview.

Villadiego, previously IBM’s regional director covering internet security systems for Latin America, founded Lumu after studying the patterns of corporate data breaches for a number of years. He observed a common denominator in these data breaches: cybercriminals have to use a network.

So Villadiego developed technology to continuously look for signs of compromise in networks and respond to that compromise. The tech evolved into Lumu, which now offers a range of services to defend against possible cyber breaches.

“Cybersecurity is a complex topic where it’s difficult to understand if the actions that have been taken are helping to increase resistance to cyberattacks,” Villadiego said. “Lumu simplifies this conversation at all levels within an organization, defining a clear north star.”

To this end, Lumu attempts to detect network threats and provide details about compromised assets, including when and how compromises occurred and recommendations for specific responses. With Lumu, customers can automate certain defense activities using their existing cybersecurity tools and review up to two years of network metadata for signs of suspect activity.

“Our interface is built for different levels of technical knowledge, so operators don’t need to be very senior analysts,” Villadiego said. “Lumu is also adaptable to [different] cybersecurity stack[s] regardless of how sophisticated or basic they may be, and grants operators the opportunity to respond in real-time to network threats on their existing infrastructure.”

Now, Lumu isn’t necessarily all that novel in this approach. Lots of other vendors accomplish what it does, more or less, including Ordr (which recently raised $40 million), Cyrebro, Darktrace and Vectra (which was last valued at $1.2 billion).

But Lumu has the good fortune of being in a market that’s seeing sustained — and even increasing — demand. In a Cisco survey published in September, 86% of organizations responding said that they plan to increase their cybersecurity budget by at least 10% over the next 12 months.

VC investments in security are becoming harder to come by, paradoxically, with data from Crunchbase showing that VC financing for cybersecurity dipped to just over $1.6 billion in Q2 2023 — down 63% year-over-year. But Villadiego pointed to Lumu’s customer momentum as evidence it might buck the trend: 881 live deployments as of September and 133% growth in annual recurring revenue year-over-year.

“[Organizations are facing] complexity in understanding how AI can work for them, and letting go of investments and legacy technologies that have proven to be ineffective,” Villadiego said. “The pandemic accelerated Lumu’s growth because organizations relied on many security controls that stayed in corporate offices while the network traffic was flowing from the houses of the employees to the cloud with little if any scrutiny, creating a massive opportunity for cybercriminals to cause harm.”

More TechCrunch

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

16 hours ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

17 hours ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats, unveils ‘family’ plan, dark mode and more

We all fall down sometimes. Astronauts are no exception. You need to be in peak physical condition for space travel, but bulky space suits and lower gravity levels can be…

Astronauts fall over. Robotic limbs can help them back up.

Microsoft will launch its custom Cobalt 100 chips to customers as a public preview at its Build conference next week, TechCrunch has learned. In an analyst briefing ahead of Build,…

Microsoft’s custom Cobalt chips will come to Azure next week

What a wild week for transportation news! It was a smorgasbord of news that seemed to touch every sector and theme in transportation.

Tesla keeps cutting jobs and the feds probe Waymo

Sony Music Group has sent letters to more than 700 tech companies and music streaming services to warn them not to use its music to train AI without explicit permission.…

Sony Music warns tech companies over ‘unauthorized’ use of its content to train AI

Winston Chi, Butter’s founder and CEO, told TechCrunch that “most parties, including our investors and us, are making money” from the exit.

GrubMarket buys Butter to give its food distribution tech an AI boost

The investor lawsuit is related to Bolt securing a $30 million personal loan to Ryan Breslow, which was later defaulted on.

Bolt founder Ryan Breslow wants to settle an investor lawsuit by returning $37 million worth of shares

Meta, the parent company of Facebook, launched an enterprise version of the prominent social network in 2015. It always seemed like a stretch for a company built on a consumer…

With the end of Workplace, it’s fair to wonder if Meta was ever serious about the enterprise

X, formerly Twitter, turned TweetDeck into X Pro and pushed it behind a paywall. But there is a new column-based social media tool in town, and it’s from Instagram Threads.…

Meta Threads is testing pinned columns on the web, similar to the old TweetDeck

As part of 2024’s Accessibility Awareness Day, Google is showing off some updates to Android that should be useful to folks with mobility or vision impairments. Project Gameface allows gamers…

Google expands hands-free and eyes-free interfaces on Android