White Sky, a Menlo Park-based security software company, has raised a $7.5 million round of funding from Trinity Ventures, Prism VentureWorks, and strategic investor Intersections Inc., an identity theft software company.
The round adds to the company’s $27 million in total funding.
White Sky was founded in 2005 as a consumer-facing cyber security company. Its product was a secure smartdrive that customers carried around with them, which proved to be unsavory to users and expensive to the company. In 2008, White Sky switched gears into a white label software company that provides security for consumer-facing web companies. The consumer-facing solution — now called ID Vault – is still there, but in a software version.
White Sky’s B2B offering prvoides a custom security back and front-end software. “With most security software, you install it and forget it,” founder David Watkins says, “but we have a much higher interaction and usage rate, which helps customers build their brands and retain users. It also exposes them to the other services more effectively.”
The strategy appears to be working. With “millions” of clients, including a few big fish like Comcast and AOL, White Sky plans to grow revenue between 200 percent and 300 percent this year. It’s not quite profitable but expects to turn that corner in the next six to 12 months, Watkins says.
The new funds will help the company scale its systems and increase its engineering team.