Montreal-based cyber security startup Flare Systems today announced they have raised a million-dollar seed round, led by Luge Capital, also of Montreal. WhiteStar Capital also participated in the round.
The company offers its clients, primarily financial institutions, a range of products to help combat cybercrime and keep both banks customers and their data safe from attack. The idea being to help protect them at all stages where a cyber criminal might attack. Flare’s unique value proposition lies in their ability to validate and prioritize threats before, during or after an attack. This allows cyberthreat intelligence teams to address their issues without wasting time on false positives. The company has already secured large key customers in the financial services sector.
In a statement released today, the company said the investment will be used to expand the company’s roll-out in Canada and the US, and to further develop a complementary suite of products to help financial institutions fight financial crime.
“Today we are providing some of the deepest intelligence available on the market. We are pleased to partner with Luge Capital and WhiteStar Capital to help us fuel the fight against this growing global issue.” explained Mathieu Lavoie, Co-Founder and CEO of Flare Systems. He added that the company was founded to help fill gaps in cyber security which they identified working in this field over a number of years.
Now just over a year old, Luge capital tells Montreal In Technology that Flare Systems fits well in their portfolio construction strategy due to the startup’s focus on financial institutions and financial crimes.
“Sensitive internal and customer data is growing massively and hacking techniques to steal that data are becoming increasingly sophisticated. There is a critical need in the market for Flare Systems’ solutions that help financial institutions and other organizations protect their data from cybercriminals,” said David Nault, Co-founder and General Partner of Luge Capital. “Flare Systems’ powerful combination of cybersecurity tools give a holistic view on the cyber attack chain and enables collaboration between cybersecurity, fraud and compliance teams.”
There is a large global market for Flare Systems products, however the company is currently focused on cybersecurity for financial institutions. They hope that focus gives them added market intelligence and credibility when building their products and servicing customers. Financial institutions are attached online every 39 seconds, and financial crimes represent a $63B opportunity according the Luge Capital.