Client-side security startup Source Defense Ltd. has raised $27 million in new funding to accelerate growth, including the expansion of sales, marketing, alliances, and research and development.

Springtide Ventures led the Series B round. Also participating in the round were existing investors Jerusalem Venture Partners, AllegisCyber Capital, Global Brain, Connecticut Innovations, NightDragon and Capital One Ventures. Including the new funding, the company has raised $47.5 million to date, according to data from Crunchbase.

Founded in 2014, Source Defense offers client-side security for websites, providing real-time threat detection, protection and prevention of vulnerabilities originating in JavaScript. The company’s security platform provides a comprehensive and complete solution addressing threats and risks from the increased usage of JavaScript, libraries and open source in today’s websites.

Source Defense is seeking to address a major concern related to third-party supply chain risk, which has led to material adverse impacts on thousands of companies. One of the largest and least quantified business vulnerabilities lies in the website use of client-side JavaScript.

The company argues that client-side code, delivered in real-time by third-party supply chain partners, enhances the website user experience but represents unmanaged and unprotected shadow code, effectively making websites easy to target. This threat and attack surface have already resulted in hundreds of high-profile attacks and led to more than 400 client-side attack incidents, including credential harvesting, formjacking and Magecart attacks in the past two years.

Source Defense’s platform offers security and compliance for any website that collects sensitive data or is transaction-oriented. It addresses a gap in the management of third-party digital supply chain risk with a zero-trust model that extends security beyond the network to the client.

The Source Defense solution has been deployed by leading Fortune 500 enterprises in the financial services, retail, e-commerce and healthcare markets. The company has achieved 250% percent growth in the past two years and will increase staff by 70% by the end of 2022, though it didn’t provide specific numbers. Source Defense currently protects nearly 1.5 billion monthly site visits and prevents about 6 billion quarterly violations of security and compliance policies.

“As with most crimes, the investigative refrain is, ‘follow the money,’ yet so many organizations know so little about what is deployed within, and has proximity to, a literal wealth of financial and core brand transactions on their sites,” Dan Dinnar, chief executive officer of Source Defense, said in a statement. “Source Defense not only diagnosed 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, [personally identifiable information] theft and content defacement.”

Image: Source Defense