After winning a series of contests and awards in the past year – including the GovTech Pioneers in Vienna, and DigitalK Startup Competition in Sofia, the Dutch-Bulgarian information security company LogSentinel finally got the recognition of the investors too. The startup, that provides information security solutions for the financial, healthcare and public administration sectors, has just raised its first significant investment round of €1m, led by the local early-stage fund Eleven Ventures.
With the fresh capital, the company is aiming to expand in new markets. The first stop is Austria, where LogSentinel is considering to open its first office outside Bulgaria, we learn from Kalina Konstantinova, the company’s Chief Commercial Officer.
On a data security mission
“Cybersecurity is a very competitive and challenging industry playing a key role in today’s technologically advancing world – corporations, banks, SME’s and even individuals have to think about enhancing data security and preventing unlawful use of information. The team of LogSentinel proved with their work throughout the last couple of years that they are highly capable professionals who deliver world-class services to their clients,” says in an official statement investor Daniel Tomov.
After the initial funding of €100k in 2017, this is the first significant investment LogSentinel receives. Since then, the company has managed to finance its product development by providing consultancy and services in the area of information security and data compliance. After raising the round, LogSentinel will now focus on its products and market expansion.
The solution with which LogSentinel was started in 2017 is a blockchain-based real-time audit trail system. Last year the company introduced also a database that encrypts each separate record making a data breach close to impossible. In the past two years, the company did a Proof of Concept with Raiffeisenbank Bulgaria and went through a corporate innovation program by Visa. Going through these processes, the team realized that the institutions and potential clients of the focus sectors use different legacy systems. So LogSentinel has recently introduced another product that puts a per-record encryption layer on every database without the need of migration. “And this is something that the market hadn’t seen yet,” says Konstantinova. With this offering, LogSentinel is looking to establish its presence within the $106b (as of 2019, projected by Statista) global infosec technology market.
Fuel for further expansion
“Apart from strengthening our product offering, it will help us speak loud and clear about our mission to bring top-notch security and privacy to the most sophisticated customers globally,” comments CEO Bozhudar Bozhanov.
So far, with a team of 11, LogSentinel has managed to attract clients from Bulgaria, Romania, Austria, Africa, and the US. Among their clients are brands like Raiffeisen Bank, the Austrian bank BAWAG, IBM, Veolia. In the next phase, the company is planning to further penetrate the Austrian market, especially in the fintech vertical, and is opening up a new office in Vienna. The US is the next near future target.
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