Crowdsourced IT security startup CrowdCurity has raised $1m in seed funding as part of a new investment round led by high-profile bitcoin investor Tim Draper and Kima Ventures.
CrowdCurity CEO Jacob Hansen framed the announcement as one that validates his company's novel approach to web security, saying:
The company will use the investment to expand its crowdsourced security marketplace and continue to democratize it, making it affordable and accessible to all businesses, not just large corporations with big security budgets.
CrowdCurity is a first-of-its-kind platform that connects businesses with vetted security researchers through bug bounty programs.
It currently performs security testing for major bitcoin companies such as Vaurum, Vault of Satoshi, Blockchain and BitGo, and has seen an increasing amount of adoption from other digital currency businesses – about 50 to date, according to Hansen.
So far, CrowdCurity has enrolled 1,200 security researchers and has completed 90 bug bounty programs.
Security researchers go through a vetting process with know your customer (KYC) protocols. CrowdCurity pays them in bitcoin, and clients pay CrowdCurity with bitcoin or credit card.
Draper's latest move
Although the round includes a number of significant investors, none is perhaps more visible in the bitcoin ecosystem than Tim Draper.
Tim Draper began publicly supporting bitcoin last year following the announcement that his Silicon Valley university, Draper University of Heroes, would accept bitcoin. Draper has since backed bitcoin startups Vaurum and BitPagos, and mentors Boost VC which has pledged to fund 100 bitcoin startup companies over the next three years.
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