In an area as competitive as the enterprise security market, the endorsement of a big-name investor can be tremendously valuable for a startup looking to stand out. Illusive Networks Ltd. received exactly that today with an investment from Microsoft Corp.’s recently formed private equity arm.

The Israeli firm didn’t specify the size of the round but divulged that the cash infusion will help advance expansion efforts and finance the development of new features for its security platform. In contrast with most network protection tools, the software focuses not on keeping hackers out of corporate infrastructure but rather ensuring that they can’t cause any damage once they’re inside.

At its core is a deflection mechanism based on the tried and tested honeypot approach. Illusive Networks enables companies to set a trap for attackers by setting up decoys that mimic frequently targeted systems. When a hacker stumbles into one of the platform’s honeypots, its machine learning algorithms make sure that they keep digging themselves deeper into the hole instead of turning their attention to the genuine infrastructure.

Illusive Networks keeps up the charade in several ways. First, its software adapts honeypots to their surroundings, which means that a decoy folder in a system belonging to an accounting team will contain files with finance-themed titles. The algorithms under the hood then keep generating false login credentials and other distractions as the attack progresses. The goal is to keep hackers busy long enough for security personnel to find a way of locking them out.

There are several potential reasons why Microsoft decided to back Illusive Networks. For one, it may be looking to make the startup’s technology available on its Azure public cloud, where a growing number of organizations are running mission-critical applications. Providing customers with a broad selection of security tools is becoming increasingly important as a result.

The other potential consideration is purely financial. Most of the investments that Microsoft have made so far were in startups whose products are of direct interest to its customers, but it’s also backed a couple of venture capital funds. The latest was Team8, the incubator where Illusive Networks got its start.

Team8 and the startup’s other investors poured more than $30 million into its war chest before today’s investment. Most of it was provided last year in a $22 million round that saw the participation of Alphabet Inc. Executive Chairman Eric Schmidt’s Innovation Endeavors.

Image courtesy of Illusive Networks