Dark web firm Digital Shadows gets cash boost

A London cyber security start-up which alerts companies to potential threats on the dark web has raised $26 million (£19 million) to fuel its expansion.

Digital Shadows, which is based at the Level39 accelerator in Canary Wharf, received the backing from investors led by Octopus Ventures, the London-based venture capital firm which was an early investor in Zoopla.

Other new investors in Digital Shadows are Silicon Valley-based World Innovation Lab and Industry Ventures, which backed Facebook and Alibaba. Existing investors which also took part in the funding round include Passion Capital.

Digital Shadows’ chief executive Alastair Paterson said the funds would be invested in its SearchLight digital risk management service, which scans for potential cyber threats to clients such as banks, including on the dark web.

“The main thing driving this round is the rate of expansion we’ve seen. We’ve been growing at multiples each year,” Paterson said.

“While the top end of the financial sector was our initial focus, we now have clients in all sectors. It’s a huge marketplace to go after.”

Digital Shadows, which was founded in 2011, now employs more than 140 people.