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Venture capitalists bet on Sublime, a startup bringing AI to email security

Dec 12, 2024 - cnbc.com
The article discusses the evolving landscape of email security, highlighting the rise of new companies in a market traditionally dominated by firms like Proofpoint and Mimecast. Proofpoint, acquired by Thoma Bravo in 2021, and Mimecast, which went private in 2022, face competition from startups leveraging generative AI to enhance security. Notably, Material Security and Abnormal Security have gained significant valuations, with Abnormal reaching $5.1 billion. Sublime Security, co-founded by cybersecurity veteran Josh Kamdjou, recently raised $60 million and is gaining traction by offering transparency and better threat coverage compared to competitors. Brex, a business credit card issuer, switched from Material to Sublime, citing its effectiveness in blocking problem emails.

The article also notes that Abnormal Security, with over $200 million in annualized revenue, is quickly gaining market share, often used alongside existing solutions like Mimecast or Proofpoint. Despite its autonomous nature, Abnormal claims transparency in explaining attack techniques. Sublime, however, emphasizes its ability to catch threats missed by larger providers like Google and Microsoft. The challenge for incumbents is less about losing existing customers and more about attracting new businesses opting for next-generation tools. Proofpoint is adapting by acquiring AI startup Tessian, while Sublime focuses on R&D rather than aggressive marketing, relying on word of mouth and tools like EML Analyzer to demonstrate its capabilities.

Key takeaways:

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  • New email security companies like Material Security, Abnormal Security, and Sublime Security are gaining traction in the market, leveraging AI to enhance their offerings.
  • Abnormal Security is significantly larger than its competitors, with over $200 million in annualized revenue, and is used by some companies as an add-on to existing solutions like Mimecast or Proofpoint.
  • Sublime Security, co-founded by cybersecurity veteran Josh Kamdjou, is gaining attention for its ability to catch threats that larger providers like Google and Microsoft might miss.
  • Established companies like Proofpoint are responding to the new competition by acquiring AI startups, while Sublime focuses on R&D and word-of-mouth marketing rather than aggressive sales tactics.
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