Munich-based Build38 recently closed a €13 million series A round led by Tikehau Capital's European Cybersecurity Growth Fund.
The round, also backed by eCAPITAL Entrepreneurial Partners and Caixa Capital Risc, will allow Build38 to expand customer outreach, partnerships and product capabilities.
Smartphones are no less of a security risk than conventional PCs or other connected endpoints. Malicious actors can access pre-built code to upload fake apps onto smartphone marketplaces. These marketplaces play an increasing role in our day-to-day lives. Build38's provided data shows the average user has 40 mobile apps installed, with 70% of digital commerce performed from mobile handsets.
"Mobile applications play a critical role in the functioning of today’s digital society, yet we continue to see security incidents cause severe reputational and financial damage to companies around the world,” says Build 38 CEO and managing director Dr. Christian Schläger.
Build38 offers a trusted application kit that lets developers of smartphone apps integrate firewalls, AI threat scans, and other endpoint security.
The trusted application software should make it easier to shield handsets from unknown attack vectors that leave third-party smartphone installs exposed. It is compatible with various compliance standards, like eIDAS, PCI, SSI, and MPoC among others.
Developers use the software to build distinct security controls on top of standard provisions baked into the Android and iOS smartphone operating systems.
That should mean app creators spend less time searching for potential software flaws, while also countering shortfalls in external cybersecurity expertise and reducing project expenditure.
Augustin Blanchard, executive director at Tikehau Capital, commented: "Application Security is one of the fastest-growing subsegments of Cybersecurity. Build38 is building the very core of tomorrow’s Cyber defence by protecting applications, not only networks and computers.
"We are proud to support this stellar team with impeccable execution capabilities in this round that will contribute to positioning Build38 as the leading mobile AppSec provider.”
In addition to the trusted application suite, Build38 offers multiple cybersecurity services aimed at encouraging a "zero-trust, 360 degree" approach to securing mobile apps.
Build38 was set up in 2018 by cybersecurity, software security, and identity experts Christian Schläger, Pedro Hernandez, Joaquín Fernández, Marc Obrador, and Torsten Leibner.
It was included in Gartner's Market Guide and the Hype Cycle for Application Security, having been recognised by both listings since 2019.
In the interim, Build38's presence has been expanded to reach more APAC and EMEA customers, and in the last 12 months the size of its operation has doubled, as has turnover. Clients include Minesec, Verimi and Republic Bank of Ghana, among many others.
In conjunction with the series A round Build38 has appointed Javier Polo and Oliver Gajek to advisory board.