Meet the LA-Based Cybersecurity Companies Developing Software to Mitigate Cyber Threats

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

​knight fighting cybersecurity bugs
Evan Xie

In 2022, there was a 28% increase in global cyber attacks compared to 2021. On average, there are over a thousand cyber attacks per organization that occur worldwide.

In the last year alone, we saw cyber threats penetrate some of the largest tech companies and organizations including Los Angeles Unified School District (LAUSD), TikTok, Twitter, Apple and Meta.

Here’s a look at three local cybersecurity companies that developed software to protect against identity theft and cyber threats.


Medcrypt

The MedCrypt team: Seth Carmody (VP of Regulatory Strategy), Vidya Murthy (Chief Operations Officer), Axel Wirth (Chief Regulatory Strategist), Mike Kijewski (CEO and co-founder), Clayton McNeil (VP of Engineering), William Fenstermaker (VP of DevOps), and Eric Pancoast (CTO and co-founder)Courtesy of Medcrypt

In 2014, Mike Kijewski realized that people were becoming increasingly concerned about cybersecurity vulnerabilities in medical devices. During this time, Kijewski also learned that the root cause of some of the major medical device recalls and security incidents were due to the poor application of cryptology within the software.

That’s when Kijewski teamed up with his co-founder Eric Pancoast of GammaBasics to start medical device security platform Medcrypt.

The Solana Beach-based company will start working with the medical device manufacturer the moment the manufacturer begins writing code for a new device or a software update for an existing device. Though it varies, Kijewski says, it can take anywhere from two to twelve weeks to install Medcrypt’s software into a medical device.

“We found that 90% of medical devices fall into one, two or three categories of products that use very similar software and hardware,” Kijewski shares with dot.LA, “So we're able to build standardized software tools that address some of the problems that you would find in common medical device architectures.”

According to a report by the editors of Cybersecurity Ventures, the global healthcare cybersecurity market is positioned to hit $125 billion by 2025.

Since 2016, Medcrypt has directly worked with the medical device manufacturers like X-ray imaging tools or surgical robots to ensure that each device is protected before it reaches the doctor's or medical professional’s hands.

While a majority of the startup's customers are reluctant to share their partnership publicly, due to security reasons, others like radiation oncology company Accuray have been vocal about its work with Medcrypt.

In October, the company raised its $25 million Series B funding round and Kijewski said that a majority of the funds will be used to continue scaling the company’s software development.

SecureAuth

The SecureAuth team, from left to right: Paul Trulove CEO, Mandeep Khera CMO, Karan Dua CFO, Shahrokh Shahidzadeh CTO, Dennis Dowd VP of Worldwide Sales, Kristy Miller VP of Human Resources and Alan Lipton SVP of Engineering. Courtesy of SecureAuth

Founded in 2005, cybersecurity company SecureAuth specializes in verifying user identity, better known as identity and access management (IAM). The company has designed software for large enterprises to provide secure access for its employees on applications and data for cloud, mobile, web and VPN systems.

The Irvine-based business is tailored to companies with over a thousand people in its workforce. SecureAuth installs Arculix, a passwordless authentication solution, on its clients' work computers and desktops to ensure that their employees get access to what they need, when they need it.

Paul Trulove, the CEO of SecureAuth said that the company is seeing a lot of interest from the larger enterprise market. A majority of SecureAuth’s business is in the United States and Canada, but the company also has a footprint in Europe and Asia Pacific, Middle East and Africa.

Given the increase in cyber attacks on various platforms, Trulove added that, “this business has an opportunity to reincarnate itself a little bit and participate in what I think is going to be a wild ride over the next several years in the identity management space.”

The company’s business model runs on an annual subscription and Trulove said that on the low end it can cost several thousand dollars to over a million for other companies.

Resecurity

CEO and co-founder Gene YooCourtesy of Resecurity

Los Angeles-based cyber security and intelligence company Resecurity developed a SaaS-delivered platform to help businesses and consumers to protect themselves from cybersecurity threats and to prevent risks related to data breaches and identity theft.

After 30 years of working for companies large brands like Coca-Cola Enterprise, Warner Bros. and Sony, co-founder and CEO Gene Yoo switched over to cybersecurity and wanted to build something based on data. Yoo founded Resecurity and has bootstrapped the company since 2016.

The company has a number of tools for enterprise and government organizations to choose from including: Endpoint Protection, External Attack Surface Management (EASM), Risk, Vulnerability Assessment and Penetration Testing (VAPT), Context and Cyber Fusion Center.

Of the six products, Yoo says that Risk, a digital risk monitoring program is the most popular amongst Resecurity’s clients because he says it’s like “having the power of cyber threat intelligence in a box.”

Resecurity also offers a product called IDProtect, which is intended for individuals that are looking to secure their digital identity. Yoo says that IDProtect can also be used at the enterprise level. By installing IDProtect on a device, consumers will be notified of any breaches towards an individual’s online credentials that may lead to a potential cyber attack.

The company also runs on an annual subscription basis. Yoo says that it can cost up to $1 million for large enterprise or government organizations. But individuals have three monthly options: basic ($3.99), gold ($4.99) or a premium ($7.99) plan.

“We (Resecurity) wanted to build something that can serve as many organizations, many groups and many different problems,” said Yoo.

🏰 Disney's Epic Investment Stands Out Amidst Gaming Industry Layoffs

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

🔦 Spotlight

In the midst of widespread gaming industry layoffs, a glimmer of positive news emerges as Disney announces a significant move: a $1.5 billion investment in Epic Games. 🏰💰🐭

Image Source: Disney

Disney's $1.5 billion investment in Epic Games, disclosed late Wednesday, signals a strategic alignment aimed at expanding the success of "Fortnite." The deal enhances Epic's growth prospects after financial setbacks, including layoffs, and strengthens the partnership between the two companies. With Disney gaining a larger equity stake in Epic, the collaboration will broaden the integration of beloved Disney franchises like Marvel, Star Wars, Pixar, and Avatar into the game, potentially boosting its appeal and longevity. This significant investment underscores Disney's commitment to interactive entertainment and signifies a shift towards games as a primary revenue stream, aligning with the growing trend of digital engagement among younger demographics. Moreover, the potential for crossover sales of physical Disney products within "Fortnite" and the exploration of new content distribution channels are just some of the opportunities arising from this partnership.

For LA tech, the Disney-Epic Games partnership represents a validation of the region's burgeoning tech and gaming ecosystem. The substantial investment in Epic, who maintains a large Los Angeles office with 1,000+ employees (according to LinkedIn), reflects confidence in the LA’s talent pool and innovation potential. Additionally, this partnership between two industry giants fosters an environment for further collaboration, investment, and growth within LA's tech sector. As Disney and Epic Games deepen their ties and explore new avenues for content integration and distribution, it not only elevates the prominence of LA as a tech hub but also stimulates economic growth and job creation in the region. This partnership highlights LA's unique position as a hub where technology and entertainment converge. With its ability to integrate diverse industries, LA is driving innovation and expansion in digital entertainment. 🚀💸🎮

🤝 Venture Deals

LA Companies

  • ProducePay, a financing and marketplace platform for the fresh produce market, raised a $38M Series D led by Syngenta Group Ventures joined by Commonfund, Highgate Private Equity, G2 Venture Partners, Anterra Capital, Astanor Ventures, Endeavor8, Avenue Venture Opportunities, Avenue Sustainable Solutions, and Red Bear Angels. - learn more
  • Blush, an invite-only dating app that drives users to local businesses on dates, raised a $7M Seed Round from individuals like Naval Ravikant. - learn more
  • Mogul, a startup founded last year that provides an overview of an artist's royalty earnings and identifies areas where money is owed but has not yet been collected, raised a $1.9 million seed round from Wonder Ventures, United Talent Agency, AmplifyLA, and Creator Partners. - learn more
  • Avnos, a hybrid direct air capture startup, raised a $36M Series A led by NextEra Energy and joined by Safran Corporate Ventures, Shell Ventures, Envisioning Partners, and Rusheen Capital Management. - learn more
  • AI.fashion, startup whose mission is to help retailers enhance the online shopping experience by providing consumers with virtual try-ons and personalized fashion recommendations, raised a $3.6M Seed Round led by Neo. - learn more
  • Suma Wealth, startup that aims to demystify financial topics and provide culturally relevant content, virtual experiences, and resources to help Latino users navigate financial challenges and opportunities, raised a $2.2M Seed Round . Radicle Impact led, and was joined by Vamos Ventures, OVO fund and the American Heart Association Impact Fund. - learn more
  • 222, a startup that helps users discover their city and meet new people through unique social experiences, raised a $2.5M Seed Round. Investors included 1517 Fund, General Catalyst, Best Nights VC, Scrum Ventures, and Upfront Ventures. - learn more
  • LimaCharlie, a security operations cloud platform, raised a $10.2M Series A led by Sands Capital. - learn more
  • Polycam, an app that uses a smartphone’s sensors to capture 3D scans of objects, raised an $18M Series A co-led by Left Lane Capital and Adjacent, and joined by Adobe Ventures and individuals like Chad Hurley and Shaun Maguire. -learn more.

LA Venture Funds

Actively Raising

  • ReelCall, Inc., an entertainment technology company focused on powerful apps and platforms that help build and maintain the professional network of connections vital to career growth, is raising a $850K Pre-Seed Round. - learn more
  • CZero, a startup building software to decarbonize logistics for logistics businesses and goods business through a vetted marketplace and optimization software. - learn more
  • Couri, a technology startup addressing last-mile delivery issues, is raising a $450K Pre-Seed Round at a $2.2M post money valuation. - learn more
  • Sweetie, a marketplace to help people plan date nights, is raising a $1.5M Pre Seed Round. - learn more
  • StartupStarter, an investment platform that provides real-time data and analytics on startups, is raising an $850K Angel Round. - learn more

If you’re a founder raising money in Los Angeles, give us a shout, and we’d love to include you in the newsletter!

Venture Waves, Climate Tech Wins, and Silicon Beach's Ongoing Evolution

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Anduril Seeks $1.5B in VC Funds

Defense company Anduril Industries Inc., based in Costa Mesa and founded by Palmer Luckey, is seeking to raise $1.5 billion in fresh funds to boost its valuation to $12.5 billion or more, according to sources quoted by The Information. This fundraising effort, if successful, would mark one of the largest venture capital rounds of the year.

Image Source: Anduril

Anduril recently secured a contract to develop and test small unmanned fighter jet prototypes under the Air Force’s Collaborative Combat Aircraft (CCA) program, beating out major defense companies like Boeing, Lockheed Martin, and Northrop Grumman. Alongside General Atomics, Anduril will design, manufacture, and test these aircraft, with a final multibillion-dollar production decision expected in fiscal year 2026. This program aims to deliver at least 1,000 combat aircraft to fly in concert with manned platforms and is part of the Air Force’s Next Generation Air Dominance initiative. Central to Anduril’s success in this contract is the Fury autonomous air vehicle, acquired through the purchase of Blue Force Technologies. This victory underscores Anduril's rapid advancement in the defense sector, aligning with Luckey's vision of building faster and more cost-effective defense assets. - learn more

Los Angeles Ranks Number 1 in Emerging Climate Tech Hub

The 2024 Emerging Climate Tech Hubs Report by Revolution highlights Los Angeles as a burgeoning center for climate tech innovation. LA's growth in this sector is driven by its diverse talent pool, strong research institutions, and a culture of environmental consciousness. The city's unique mix of legacy industries, such as entertainment and aerospace, alongside emerging tech companies, positions it as a pivotal player in the climate tech landscape. This shift reflects a broader trend of decentralized climate tech funding across the U.S., reducing the historical dominance of California's traditional hubs. - learn more

Silicon Beach: Looking Back, Moving Forward

Assessing the overall health of the startup market is challenging, especially as venture capital funding has decreased by an average of 61% from 2021 to 2023 across the top VC markets in the US. Markets with robust ecosystems in AI, SaaS, Biotech, Healthtech, and Fintech appear to be weathering the downturn better than those focused on Consumer and Gaming industries, areas where Los Angeles traditionally excels.

Percent Change In VC Funding By Region

CB Insights

LA Times paints a rather bleak outlook on the Los Angeles tech scene noting venture capital funding in Greater Los Angeles plummeted 73% from 2021 to 2022. Silicon Beach, once a vibrant tech corridor, currently faces high vacancy rates and lacks late-stage financiers, especially in the AI sector. However, there are positive signs, including growth in aerospace startups and increased venture capital investment in early 2024, suggesting a potential rebound for LA's tech ecosystem.

While LA may not be exceeding expectations during this period, its tech ecosystem warrants a nuanced evaluation, given the broader market dynamics and its strong performance in specific sectors. Reach out to us with your thoughts.

🚀 SpaceX gears up for another stellar year, active raises, and more

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Happy Friday Los Angeles! You made it through the first week of 2024!

🔦 Spotlight

Elon Musk may be a divisive (albeit entertaining) figure, but the continued success of SpaceX is pivotal for the aerospace industry in Los Angeles and more broadly around the world.

Image Source: SpaceX webcast

What happened with SpaceX in 2023?

  • Elon Musk challenged Facebook founder, Mark Zuckerberg to a cage fight.
  • SpaceX launched 96 successful missions with its Falcon series of rockets, a 57% increase over its previous annual record.
  • SpaceX conducted two test flights of the largest and most powerful rocket ever built, Starship.
  • Roughly two-thirds of SpaceX's launches in 2023 were devoted to building out Starlink, the company's satellite-internet megaconstellation.
  • Isaacson’s Elon Musk biography was published in September including everything from Musk’s tumultuous relationship with his father to his work ethic and “demon mode”.

Moving forward what can we expect from SpaceX and its controversial founder? Continued innovation pushing the aerospace industry to new limits? Yes. More drama? Without a doubt.

Here is some of what is to come in 2024:

🤝 Venture Deals

Just Announced

Check back next week!

LA Exits

  • CG Oncology, an Irvine, CA-based developer of immunotherapies for bladder cancer, filed for a $100M IPO. It plans to list on the Nasdaq (CGON) with Morgan Stanley as left lead underwriter, and has raised around $317m in VC funding. - learn more
  • McNally Capital agreed to sell Advanced Micro Instruments, a Costa Mesa, CA-based maker of gas analyzers and sensing technologies, to Enpro (NYSE: NPO). - learn more

Actively Raising

  • ReelCall, Inc., an entertainment technology company focused on powerful apps and platforms that help build and maintain the professional network of connections vital to career growth, is raising a $850K Pre-Seed Round. - learn more
  • CZero, a hard-tech startup that is developing a technology for decarbonizing natural gas, is raising a $1.5M Seed Round. - learn more
  • Couri, a technology startup addressing last-mile delivery issues, is raising a $450K Pre-Seed Round at a $2.2M post money valuation. - learn more
  • Sweetie, a marketplace to help people plan date nights, is raising a $250K Angel Round. - learn more
  • StartupStarter, an investment platform that provides real-time data and analytics on startups, is raising an $850K Angel Round. - learn more

If you’re a founder raising money in Los Angeles, give us a shout, and we’d love to include you in the newsletter!

📅 LA Tech Calendar

Sunday, January 7th

Wednesday, January 10th

  • Startup Cafe: Networking with a Kick - Entrepreneurs, Startups, and Tech Enthusiasts join together to meet and connect with like-minded people, industry professionals and investors, while enjoying a nice cup of coffee in Venice at The KINN. This week’s interactive discussion about AI’s evolution in entertainment will feature Dr. Sam Khoze and Rachel Joy Victor.
  • Venice Tech Happy Hour- Join Startup Coil and FoundrHaus Wednesday evening and enjoy the sunset from the rooftop, grab a bite overlooking Abbot Kinney, and mingle with other tech enthusiasts and entrepreneurs by the bar on the patio.

Have an awesome event coming up? Reach out to be featured on next week’s Newsletter!

📙 What We’re Reading

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