Symantec, Frost Data Capital Partner to Develop, Fund Security Startups

Security startups have been quite popular with venture capitalists lately, with nascent companies such as CrowdStrike, CounterTack and Menlo Security, among others, all winning solid VC cash to get their companies going. Now security heavyweight Symantec (SYMC) has teamed up with VC firm Frost Data Capital to create and feed even more startups with the seed money they need for new ventures.

The two companies said they will co-develop and fund early stage startups as well as provide other resources and expertise—particularly in the areas of cybersecurity analytics, big data and Internet of Things security—to get the companies on their feet.

Frost Data Capital will provide the startups with access to its data analytics ecosystem, while Symantec—a leader in the security space—will collaborate with the new ventures to figure out which security challenges are best to focus on to target the most imminent threats and vulnerabilities, they said in a press release.

“We’re taking a fresh look at driving innovation in the market and this partnership will enable Symantec to transform raw ideas and concepts into meaningful security companies,” said Jeff Scheel, senior vice president of Strategy, Alliances and Corporate Development at Symantec, in the release. “By collaborating with Frost Data Capital, we create an environment primed to incubate new, innovative and disruptive startups in cybersecurity.”

One area of particular focus will be IoT technologies, said John Vigouroux, managing partner and president of Frost Data Capital. “We’re seeing a huge opportunity in the IoT security market,” he said. The companies will turn a particular eye on vertical markets like process control, automotive, healthcare and energy, which require specialized security skills, Scheel added.

Specifically, Symantec and Frost Data Capital will incubate up to 10 companies per year that will deliver advanced cybersecurity analytics, they said. Indeed, Frost Data Capital typically provides funding for companies that offer data and analytics solutions, with the bulk of its portfolio in this space.

Symantec will focus on the technology strategy and delivery of the startups, while Frost Data Capital will help them on the business side of things, providing them with experienced entrepreneurs, innovation methodology and process, the companies said. In addition to big data analytics, the firm also has experience in IoT, industrials and health care.

“We’re excited to work with Symantec to bring cutting-edge, relevant security analytics solutions to market rapidly, in order to prevent next-generation cyberattacks on corporate infrastructures,” Vigouroux said. “Symantec brings to the table world-class security technology, global presence and strategic relationships that will be instrumental to launching these startups.”