Israeli cybersecurity firm with District link lands $27M in funding round

Photo | Yakir Shukron Source Defense staff members, from top left: Keren Rubin, head of HR; Avital Grushcovski, founder and VP, and Sagi Shvartz, VP of R&D. Bottom row, from left: Hadar Blutrich, founder and CTO; CEO Dan Dinnar and CFO Yehudit Baum.

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By Liese Klein

An Israeli cybersecurity firm with a presence in New Haven’s District coworking space announced Tuesday that it had secured $27 million in Series B funding.

Source Defense, based in the central Israeli city of Rosh Haayin, will use the new funding to accelerate growth by investing in sales, marketing, alliances and R&D, according to a statement.

The company lists its U.S. address as 470 James St., the location of the District co-working complex in New Haven.

Connecticut Innovations, the state’s venture capital arm, was one of the investors in the funding round, which was led by Springtide Ventures. Jerusalem Venture Partners, AllegisCyber Capital, Global Brain, NightDragon and Capital One Ventures also participated.

Karel Tusek, chief technology officer of Springtide Ventures, will join the Source Defense board of directors.

Source Defense focuses on identifying and neutralizing threats resulting from website use of client-side JavaScript, which can contain “unmanaged and unprotected shadow code” allowing for cyberattacks like credential harvesting, formjacking, and Magecart attacks.

More than 400 cyberattacks have been traced to this vulnerability in recent years, according to Source Defense, leading to data breaches at companies including Macy’s, Ticketmaster, British Airways and Segway.

Source Defense’s platform offers “complete access control and a permission-based approach to first-party code, as well as JavaScript-based third-party tools,” according to a company statement.

CEO Dan Dinnar said, “Source Defense not only identified this as a major and growing issue very early on but partnered with some of the world’s largest and most trusted brands to put a real-time halt to any attempts at digital skimming, formjacking, clickjacking, ad injection, PII theft and content defacement.”

Source Defense has posted more than 250% growth in the past two years and will increase staff by 70% by the end of 2022, according to the statement.

Contact Liese Klein at lklein@newhavenbiz.com.