SGNL Secures $30M Investment to Revolutionize ID Security with Zero-Standing Privileges

In today’s digital landscape, identity security is increasingly recognized as the “new perimeter” in protecting sensitive information. With the rise of cloud services, the vulnerabilities posed by leaked and spoofed login credentials have become more pronounced. A startup called SGNL is taking a novel approach to address these challenges by implementing a zero-standing privilege model for user access management. Recently, SGNL announced a successful funding round of $30 million, highlighting its rapid growth in the cybersecurity sector.

SGNL Secures $30 Million in Series A Funding

The Series A funding round was led by Brightmind Partners, a newly established venture capital firm dedicated to cybersecurity investments. This round also saw participation from major strategic investors including Microsoft (via M12) and Cisco Investments, along with Costanoa, which previously led SGNL’s seed round in 2022.

With this latest funding, SGNL has raised a total of $42 million. Although the company has not disclosed its valuation, it has indicated that it is experiencing significant growth. SGNL boasts multiple major enterprise clients, including a prominent organization in the media, entertainment, and technology sectors that is leveraging SGNL’s services to streamline its cloud access management.

Addressing Identity Security Breaches

While SGNL keeps its customer list private, it highlights the risks associated with poor identity management. Notable breaches that could have been mitigated by advanced identity security measures include:

• MGM: $100 million loss
• T-Mobile: $350 million loss
• AT&T
• Microsoft
• Caesars

The Founders Behind SGNL

SGNL was co-founded by Scott Kriz (CEO) and Erik Gustavson (CPO), who previously co-founded the identity access management company Bitium, which was acquired by Google in 2017. At Google, Kriz and his team were responsible for managing identity access for services like Google Workspace and Google Cloud Platform.

During their time at Google, they identified significant gaps in identity services and the need for a solution that transcended the limitations of existing tools.

Redefining Access Management

Kriz explains that effective identity access requires contextual awareness, which includes not only passwords but also tailored access privileges for each application. He pointed out that while established companies like Okta and Microsoft excel at granting access, they often fail to revoke it when circumstances change, such as employment status.

Two primary factors have hindered security companies from effectively closing access gaps:

1. Lack of Standardization: There has been a lack of consensus among vendors regarding standards for identity management.
2. Innovative Technology: SGNL’s platform is built around the Continuous Access Evaluation Protocol (CAEP), developed by former Google engineer Atul Tulshibagwale, now SGNL’s CTO. This technology has gained adoption among major players like Microsoft, Apple, and Cisco.

How SGNL Enhances Identity Security

SGNL’s solution provides what Kriz describes as a “rich context” for access management. This allows companies to establish multiple access policies with various conditions that must be met for application access. SGNL has developed a comprehensive “data fabric,” an identity graph that operates independently of current data sources, thus enhancing security.

For instance, one of SGNL’s clients, with 400,000 employees and 30,000 roles within AWS, successfully streamlined its policies down to just six, significantly improving its security posture.

Competitive Landscape and Future Outlook

While established companies like CyberArt and SailPoint are also exploring zero-standing privilege, SGNL’s unique approach and the experience of its founders have attracted significant investor interest. Stephen Ward, one of Brightmind’s founders and a former Chief Information Security Officer (CISO) at Home Depot, emphasizes the founders’ deep understanding of large enterprise operations as a critical factor in SGNL’s potential success.

For more information on identity security solutions, consider exploring resources from CSO Online or Forbes.