Issue #26: Identity's New Guardian

Linx: Locking Down the New Security Perimeter

In a world where identity breaches have become the gift that keeps on giving to malicious hackers, a Tel Aviv-based startup is emerging from the shadows with a solution. Linx, founded just over a year ago, is tackling the nightmare of identity management head-on with its AI-powered platform.

Key Points:

• Raised $33 million in funding, including a recent $27 million round co-led by Index Ventures and Cyberstarts

• Founded by Israel Duanis (CEO) and Niv Goldenberg (CPO), both alumni of the Israeli army's elite 8200 cyber unit

• Uses AI and analytics to scan and understand an organization's system, linking all identities to actual, active employees

• Aims to address the growing problem of "ungoverned identity information" that can be exploited by hackers

Linx's approach is refreshingly straightforward: use cutting-edge tech to map out all the identities in a system, find the ones that are no longer connected to active users, and remove them. It's like Marie Kondo for your digital identities – if it doesn't spark joy (or belong to a current employee), it's time to let it go.

"Today, identity is the new perimeter, and so you need to address that," says CEO Israel Duanis. With high-profile breaches like Equifax, T-Mobile, and Snowflake all stemming from credentials issues, Linx's solution couldn't be more timely.

The startup's backstory reads like a who's who of Israeli cybersecurity. The founders' connections to the Wiz founders and quick backing from Cyberstarts' Gili Raanan (dubbed a "kingmaker" in Israeli cybersecurity) speak volumes about the potential impact of their technology.

As organizations grapple with the ever-expanding digital landscape, Linx's AI-driven approach could be the key to turning the tide against identity-based attacks. The question now is: can they scale fast enough to meet the growing demand for robust identity management?

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Vocabulary

💡Each edition we’ll bring you a new “Startup word” to help bolster your vocabulary and understanding of the subject!

Pivot: noun /ˈpivət/

Definition: A significant business strategy shift or change in product direction by a startup company.

Why It Matters: Pivots are crucial for startups to adapt to market realities, overcome challenges, or capitalize on new opportunities. A successful pivot can breathe new life into a struggling startup or propel a moderately successful one to new heights.

In Action: When Odeo, a podcasting platform, failed to gain traction, the company pivoted. They held a hackathon where employee Jack Dorsey presented an idea for a status-updating service. This pivot led to the creation of Twitter, which became one of the world's most influential social media platforms.

Quick Bites

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🗣️ Intron Health Raises $1.6M for African Accent Recognition:

🎧 Level AI Secures $39.4M for Contact Center Intelligence:

Startup Shutdown Of The Day :(

Round Closes Its Circle: A Lesson in Venture-Backed Community Building

Seattle-based startup Round, which aimed to connect tech leaders through a community-based platform, has announced its shutdown just two years after securing a $12 million Series A.

Key Points:

• Founded in 2021, Round quickly hit $1 million in annual recurring revenue

• The 2022 tech downturn and widespread layoffs disrupted their business model

• Despite having runway, the company concluded there wasn't a path forward as a venture-backed business

Analysis: Round's journey highlights the challenges of scaling a community-based platform with venture capital backing. CEO Ryan Fuller's reflection that "There were times that I wish we were a nonprofit" underscores the tension between building meaningful connections and driving rapid growth.

The startup's story serves as a cautionary tale about the double-edged sword of venture funding. While it provided the resources to scale quickly, it also created pressure to grow at a pace that proved unsustainable for a community-focused business.

As we reflect on Round's closure, it's worth considering: How can startups balance the need for growth with the integrity of their mission? Is there a middle ground between venture-backed hypergrowth and bootstrapped sustainability for community-driven platforms?