Anthony Macdonald, Yolanda Redrup and Kanika Sood
Oct 22, 2021 – 1.03pm
Encrypted data storage technology start-up CipherStash has added AirTree Ventures and Nexus Venture Partners to its register in an oversubscribed seed round. The company, which raised $3.3 million, also scored the support of Linktree CTO Zak Islam, as well as Buildkite’s Keith Pitt.
CipherStash CEO and founder Dan Draper has raised $3.3 million. The company, which is led by founder and former Expert360 engineering vice president Dan Draper, uses a searchable encryption scheme that means data is always encrypted, including field names, but remains searchable by the client. The queries themselves are also encrypted, giving sensitive data protection, without compromising on usability or performance. CipherStash’s secure data storage platform makes it easier for developers to protect data, while preserving its utility.
“We were sick of seeing data breach after data breach,” Draper said. “Traditionally when stored data is encrypted to be made secure, it then can’t be searched, rendering the functionality of the data restricted, rather than harnessed for companies. Because encrypting renders data unsearchable, most organisations don’t encrypt at all Personal identifiable information is the most common form of sensitive data stored by companies. This includes names, tax file numbers, medicare numbers, driver’s license details, credit card information, medical records and more.
In the first half of the year, there were 446 reported data breaches in Australia, according to the Office of the Australian Information Commissioner. Malicious or criminal attacks made up 65 per cent of the breaches and the healthcare sector was the most affected, followed by financial services.
AirTree partner James Cameron said before CipherStash, companies would have to choose between encrypting data and being able to use it. “Data breaches are expensive. Between the reputation cost, fines and managing the cleanup, this has now become a board level issue for every large company globally,” he said. “CipherStash has assembled a group of world-leading encryption experts to rewrite the rule book so that companies can get the most out of their data without compromising security.” CipherStash is currently focused on servicing fintechs, but will expand into other sectors in the future.