SGNL, a cybersecurity startup, has secured $30 million in Series A funding to further develop its innovative identity security platform based on the concept of zero-standing privilege. The funding round, led by Brightmind Partners, a new VC firm focused on cybersecurity, also saw participation from strategic investors Microsoft (via M12) and Cisco Investments, as well as Costanoa, which led SGNL's seed round in 2022.

The startup's platform is designed to address the growing concern of identity-based security breaches, which have resulted in significant losses for companies such as MGM, T-Mobile, AT&T, Microsoft, and Caesars. SGNL's co-founders, Scott Kriz and Erik Gustavson, previously co-founded Bitium, which was acquired by Google in 2017. During their time at Google, they identified a gap in identity security management across enterprise ID access tools, including their own.

Kriz explained that traditional ID access management systems focus on opening doors, but fail to close them when circumstances change, such as employment status or job completion. This creates potential vulnerabilities for malicious actors to exploit. SGNL's platform, built on the emerging concept of zero-standing privilege, aims to address this issue by providing conditional access to apps and data, rather than relying on standing privileges.

The platform's innovative approach is based on the continuous access evaluation protocol (CAEP), invented by Atul Tulshibagwale, a former Googler and now SGNL's CTO. CAEP has been adopted by the OpenID Foundation and is used by major companies such as Microsoft, Apple, and Cisco. SGNL's platform also utilizes AI to build and manage a "data fabric," an identity graph that enables the system to work without relying on individual data sources being up to date.

SGNL's solution has already seen significant traction, with multiple major enterprise customers, including one with "major media, entertainment, and technology operations" using the platform to streamline access management across its cloud environments. The startup claims to have reduced the number of access policies for one customer with 400,000 employees and 30,000 roles within AWS from 400,000 to just six policies, plus multiple conditions connected to them.

The investment from Brightmind Partners, a new VC firm focused on cybersecurity, is a testament to the growing interest in innovative identity security solutions. Stephen Ward, one of the founders of Brightmind, praised SGNL's founders, saying, "They understand how large enterprises work, and they've spent a decent amount of time at Google. Those things are very important. It's not a popular venture thing to say, but with an idea this big, you can create a big moat just from building the platform."

SGNL's Series A funding brings the company's total raised to $42 million, with a valuation that remains undisclosed. As the company continues to grow and develop its platform, it is likely to play a significant role in shaping the future of identity security and preventing breaches caused by leaked and spoofed log-in credentials.