IOTCUBE, a startup developing a software security solution, raised $USD 4m (4 billion won) in Series A. Korea Asset Investment and Security has led the club, followed by new shareholders: Ulmus Investments, Ernest Ventures, and Industrial Bank of Korea (IBK).

On May 21st, according to the venture capital industry, IOTCUBE has recently attracted $USD 4m (4 billion won ) investments. 4 companies, including Korea Asset Investment and Security leading the club, followed by new shareholders: Ulmus Investments, Ernest Ventures, and Industrial Bank of Korea invested $USD 1m (1 billion won) each through the purchase of new shares issued by IOTCUBE. IOTCUBE series A pre-value valuation (company value before investments) was estimated at $USD 10m (10 billion won).

IOTCUBE has, for the first time, VC fundings in its arsenal. Korea Asset Investment and Security has led the investment club. Its in-house venture investments headquarters “KAI-KVIC Smart Factory Investment Association” (total agreement of 30 billion won or $USD 30m) has executed the funding.

Ulmus Investment utilized its $USD 43.6m (43.6 billion won) “Growth Support Investment Association No. 1” funds. Ernest Investments paid through the “Smart City Advanced Industry investment association” funds worth $USD 18.6m (18.6 billion won) . The Industrial Bank of Korea joined as a shareholder by investing its own funds.

Series A Funding Details

IOTCUBE, established in 2018, is a spin-off startup of Korea University’s Software Security Research Institute (CSSA). In its early days, it laid the foundations for growth with the help of Korea University holding company. It was also selected and received R&D funds by a private investment-led technology startup program (called TIPS), organized by the Ministry of SMEs and Startups.

[IOTCUBE] CEO Hee-Jo LEE, company’s founder, is a Computer Science professor at Korea University and a scholar with extensive experience in cybersecurity. Since 2015, researchers form Carnegie Mellon University in the U.S., Zurich Federal University of Technology in Switzerland, and Oxford University in the U.K. have worked together [with Korea University] to develop solutions to analyze software vulnerabilities.

Its flagship product, Labrador, is an online platform that automatically detects vulnerabilities in software. It identifies defects in open-source software that have been disclosed so that organizations and individuals can free-mindedly use their source code. 

It gets its competitiveness thanks to the VUDDY’ algorithm, a patented technology that analyses source code down to the function level. During the IEEE (International Electrical and Electronic Association) conference, the pre-processing performance was evaluated to be twice as fast and the detection speed over 1,000 times as fast as technologies that other laboratories have.

IOTCUBE has raised Series A funds to accelerate its overseas targeting. Since last year, Labrador has been strongly targeting German manufacturers. The focus was on security software verification in smart factories and has currently entered the PoC stage.

It also has in-house manpower expansion in its arsenal. It planned to attract talents in areas such as R&D, overseas business planning, sales, regulatory response, and legal advice.

“KOREA ASSET INVESTMENTS & SECURITIES PLAYED A KEY ROLE TILL THE END OF SERIES A ROUND” ADDING “WITH THE VC FUNDS, WE WILL FOCUS OUR EFFORTS ON STRENGTHENING OUR PRESENCE IN THE GLOBAL MARKET.”

IOTCUBE CEO Hee-Jo Lee

A venture capitalist official said” As the open-source software security market expands, IOTCUBE, which provide a world’s top technology, was a natural attraction for investors”, adding, “If German partnerships work smoothly, [IOTCUBE] can expect earnings growth from next year”.

Translation from original article (Korean) :
http://www.thebell.co.kr/free/content/ArticleView.asp?key=202105201421028120107840&svccode=00&page=1&sort=thebell_check_time