Aura today disclosed that it has closed a $200 million funding round at a $2.5 billion valuation to drive more market interest around its cybersecurity services suite, which is already generating more than $220 million in annual revenue.

Most of the nine-figure funding rounds announced recently in the cybersecurity market were closed by startups focused on the enterprise. However, the consumer segment of the cybersecurity market is seeing significant activity as well. In one recent development, Palo Alto Networks Inc., which ranks among the world’s top makers of enterprise cybersecurity software, jumped into the consumer segment by launching a home Wi-Fi router with malware detection features.

Aura’s latest funding round will further increase competition in the market.

Aura, incorporated as Intersections Inc., launched in 2019. The startup sells a subscription-based suite of services that it says can protect consumers against not one but multiple types of online threats.

To fend off hackers, Aura provides antivirus capabilities and an accompanying virtual private network tool that allows users to encrypt their network connections. To protect against identity theft, Aurora’s platform detects when sensitive user data such as a consumer’s Social Security number or an application password is compromised. 

Cybersecurity products can’t always prevent hackers from accessing user data. In many cases, information is stolen not through cyberattacks that directly target consumers but rather indirectly, via a breach at a company such as a carrier. When hackers attempt to use stolen information obtained in a breach, Aura can notify affected consumers to help them take action more quickly.

Aura has algorithms that can spot unauthorized activity in users’ bank accounts. The software detects unusual transactions, as well as other malicious actions such as when there’s an attempt to remove users from their bank account. Aura bundles the software features with a technical support service, enabling subscribers to request assistance when dealing with a potential data breach.

There are other cybersecurity services that can perform tasks such as alert users when they’re affected by a data breach. However, most of those services have a fairly narrow feature set. Tools that detect stolen personal data, for example, usually lack antivirus and network traffic encryption features. Aura is betting that the ease of use it can offer by consolidating many different cybersecurity features into a single subscription will win over consumers from the competition. 

So far, more than a million users have signed up. Aura will use some of its newly raised funding to launch an advertising campaign with the goal of putting its platform in front of more consumers. Additionally, the startup is creating 200 new roles across its product, engineering and go-to-market teams to drive growth initiatives.

Aura says it raised the funding from a group of investors led by Madrone Capital Partners. Other participants included TenEleven Ventures, General Catalyst and WndrCo, Warburg Pincus and Accel.

Aura has raised $650 million to date, some of which the startup has already invested toward expanding its feature set. Several of the cybersecurity capabilities that Aura provides are based on technology it obtained through the 2020 purchase of Pango. Aura has also made other acquisitions since launching in 2019.

The startup may make more strategic acquisitions now that it has an additional $200 million to spend. 

Aura’s product strategy is in certain respects similar to the approach Palo Alto Networks has taken over in the enterprise market with its Prisma Cloud cybersecurity platform. Prisma Cloud emerged from a series of acquisitions that Palo Alto Networks had inked over the last three years. The company bought several cybersecurity software firms, each focused on a different set of use cases, and integrated their technologies into a single platform with a broad, integrated feature set. 

 The ability to access many kinds of breach prevention features in a single product is a selling point that is evidently proving compelling both in the enterprise and consumer markets. 

“We are seeing cybercrime rise at an unprecedented rate, but the technologies designed to protect consumers from cybercriminals haven’t evolved much in more than a decade,” said Jamie McJunkin, founder and general partner at Madrone Capital Partners. “Aura identified that gap in the market and delivered a simple solution to protect users online. We’re looking forward to partnering with the team to grow the business.”

One of Aura’s biggest competitors will be the company set to emerge from the currently ongoing $8-billion-plus merger between NortonLifeLock Inc. and Avast Software s.r.o. NortonLifeLock makes tools that help consumers secure personal data and receive alerts if their information is stolen in a breach. Avast, in turn, offers a popular consumer antivirus platform. After the deal is completed, the companies will have an opportunity to combine their respective products for detecting data theft and blocking hacking attempts into a single, integrated bundle much like how Aura has done.

Image: Aura