Czech startup Talsec obtains initial investment
With users increasingly favouring mobile applications over computers, attackers are turning their attention toward mobile devices. However, company executives often view security costs as a "necessary evil" due to their indirect impact on revenues. Czech startup Talsec aims to change this perspective by offering specialised tools for app developers that protect against hackers, conceal sensitive information, and detect malicious software. Originating as a spin-off from the Brno-based technology company Monet+, Talsec, after two years of organic growth, has received an investment exceeding 25 million Czech crowns in the first round from London-based Dig Ventures and Czech DEPO Ventures. This funding is intended to accelerate its penetration into the global market and support further development.
Talsec acts as a security agent within mobile apps, already protecting over a thousand applications from companies including insurers Generali and VIG, fintech firms like BrasilCard, by.U, Novücard, and the Czech Ministry of the Interior. Its popularity among developers striving to safeguard their mobile apps against major threats and adhere to best security practices is boosted by a freemium B2B business model and straightforward implementation.
The global mobile banking market was valued at 773 million USD in 2022 and is expected to reach 1.8 billion USD by 2030, averaging about 12% annual growth. Neobanking is set to claim an increasing share as new players challenge traditional banks. Fintech investments reached 75 billion USD two years ago.
"We decided to enter the market with a product that offers protection for mobile-first businesses, with an initial focus on FinTech. We want Talsec, with its freemium toolkit, to become standard for developers needing to ensure the security of their applications and their users. This year, we are on track to multiply our audience and revenue and significantly expand awareness of our products within the developer community," states Sergiy Yakymchuk, founder and CEO of Talsec. This native Ukrainian has over fifteen years of experience in security software and ten years in managing security products at companies like Gemato and Thales.
The startup has already received several awards and recognitions. Google included the company among 17 global startups using artificial intelligence to transform cybersecurity. For its AppiCrypt project, Talsec received the prestigious Ernst & Young ESO Cyber Space Innovation award, and it was selected in the Top 50 by 4YFN at the Mobile World Congress.
"The Czech Republic has given rise to multiple community-centric, category-defining software companies, from Jetbrains to Avast, and now Talsec too. The strength of the fundamental computer science training in local universities, as well as the prevalence of several cyber security companies, means that companies such as Talsec emerge with unfair advantages and have a chance to redefine entire software categories. This is our third investment in the country following Deepnote and Rossum, we are excited to continue to support the next generation of enterprise innovators here” says Rytis Vitkauskas, partner at Dig Ventures, an early enterprise-focused venture capital fund started by Ross Mason, founder of Mulesoft.
"Fraud prevention in mobile applications is an important and growing market opportunity. The technology Talsec employs addresses this challenge effectively. Unlike its competitors, Talsec boasts a highly scalable distribution model, enhancing its chances of success. Its initial product is developing rapidly and showing remarkable results. Since we began following Talsec last July, their growth has doubled," says Michal Ciffra, partner at DEPO Ventures.
Protection across mobile platforms
Talsec employs multi-layered protection to safeguard applications and APIs from threats like reverse engineering, app cloning, device rooting, and other types of attacks through application and device integrity checks. It also monitors the application's runtime environment in real-time, providing risk assessments, auditing, and data analysis. Malware detection is based on machine learning.
Initially developed for the high-security standards of the financial sector, Talsec now offers several packages as annual subscriptions. The highlight is "App Safety as a Service," which includes a suite of developer tools (SDK), application and API protection, penetration testing, monitoring services, and a user security set.
Talsec provides comprehensive protection for mobile applications across various development platforms, such as Android, iOS, and cross-platform frameworks such as React, Cordova, or Google's Flutter platform. The latter is increasingly popular among app developers, generally considered an optimal solution for neobanks and fintech companies. According to Google, more than a million published applications are based on this platform.
