ThisData

Harden your security with two lines of code.

thisdata-logoThat’s right, add two lines of JavaScript onto your login form and you’ll be making your web site, and the world, a much safer place.

paypal-phish
It’s convincing, until you look at the From address, view headers, and mouseover the button to discover a bit.ly link

An astonishing proportion of the web server traffic from which you’ve just fetched the page you’re reading now is script kiddies attempting to break in through brute-force password attacks. An even bigger problem for high-volume transactional sites like Paypal and Kiwibank is phishing, where attackers email you and lure you into entering your login credentials into a bogus site. The obvious and common solution to this problem is mandatory two-factor authentication (2FA), but it makes for a clunky user experience and is laborious to implement.

Auckland-based ThisData lets site owners take a different approach: continuous authentication. Only ask people to validate their identity if and when there’s a reason to doubt they’re really who they say they are. So for example if I have a usage pattern of logging in from the same city, with the same IP address, on the same browser, using the same cookie set, and do the same again, there’s an extremely good chance I am who I claim to be. On the other hand, if I suddenly log in from a different continent using a different operating system, or through TOR, you might want to double or triple check my credentials.

All of this is done with the addition of two lines of JavaScript on your login form, which hides a sophisticated back-end analysing geolocation, behavioral analytics, and secret sauce IP. For app and site owners, implementation effort is trivial with enormous and immediate payback.

Pricing starts at $99/month for 500 users, and goes up in usage tiers. They’re considering introducing a free usage tier to get people going. But it’s early days, and they’re still refining the pricing model.

Rich Chetwynd

Founder Rich Chetwynd has run the full startup cycle before. After founding educational software company Litmos in his bedroom, building it into an international concern, and selling it to US-based Callidus Software four years later, he decided it was time for a well-deserved break.

“I got bored though,” he says, “I wanted to ride the rocket again”.

So Chetwynd started Revert.io, a cloud backup solution. But very quickly he recognised that backups are the ambulance at the bottom of the cliff, and the much bigger and less well served opportunity was to prevent break-in and data loss in the first place.

Nick Malcolm
Nick Malcolm

He pulled in CTO Nick Malcolm, one of NZ’s top Rails devs (and erstwhile cofounder of 2011 Startup Weekend Wellington legend usnap.us), and the dream team was born. You’d have to call the change from Revert.io to ThisData more of a reboot than a pivot, but it was a definitely the right move.

Chetwynd’s rocket is about to reach orbit. After the reboot in February 2015, they went on to raise $1.2m from a number of local and offshore angels alongside the Punakaiki fund, did a zoom-out pivot from working specifically with Google apps and Salesforce in February of 2016 to bringing this intelligence to any app. They’re now monitoring over 10,000 end users for a variety of customer types, and are about to onboard another 50,000 for their first big enterprise. They’re architected for scale on AWS, and ready to go much, much bigger.

As great as it sounds, they’re not at the stage yet where the solution sells itself. Building your customer base and distribution is always hard work, especially from New Zealand. Chetwynd spends roughly half his time in the US, and the rest of the time running the team from GridAKL.

Their overarching mission is to make the Internet a safer place for everyone. There are hundreds of thousands of insecure apps and sites in the wild. Chetwynd’s asks app and site owners to ask yourselves, how valuable is the data is your app or site protecting, and how adequately are your users protected?

Ask yourselves: how valuable is the data your app or site is protecting, and how adequately are your users protected?

If you’re a dev and want to give ThisData a spin, check out their easy-to-follow documentation, and then give it a go. You won’t regret the hour or so it will take you to implement.

If you’re the owner or investor in a transactional app or web site and your team is not protecting your company against attacks using a solution like ThisData, I’d want to know why.

The bottom line is that you can put on a sad face if you’re a script kiddie or spear phisher, but the rest of us will sleep easier at night.

Legendary seed investor and SoftechVC founder Jeff Clavier looks for companies to invest in that have “three asses”: A smart-ass team with a kick-ass solution in a big-ass market. ThisData are on a steep trajectory, with an all-star team with a simple-to-implement but difficult-to-replicate solution to a highly painful problem in a massive market.

Watch out universe, here comes Rich Chetwynd riding the ThisData rocket.

2015: The year in review

2015 has been a watershed year for the startup scene in New Zealand.  When I started this Startup of the Week blog in September, a number of people asked me, “are there really enough great startups in New Zealand to feature one every week?”  The answer is a resounding yes!

Had you asked me about New Zealand startups in 2010, I would have told you that there were patches of awesome, and things looked like they were just starting to come together. Five years on, things are really pumping, as evidenced by:

  • Thriving startup hubs in the main centres: Visit GridAKL, BizDojo, CreativeHQ, or The Greenhouse and you’ll be under no illusion that healthy and diverse startup activity abounds.
  • Entrepreneurial buzz in the regions: The BCC (Palmerston North), and Bridge Street Collective (Nelson) have been going from strength to strength for several years, and we’re seeing new players emerge in Whangarei, Tauranga, Taranaki, Hawkes Bay, and Dunedin.
  • Finally, the rise of Ag Tech startups: In prior years, there was a paucity of agricultural startups coming out of New Zealand. Now, with companies like Engender, CropX, BioLumic, eBee, and others, this sector which builds on NZ’s natural strengths looks like it’s getting to critical mass.
  • Meetups are mushrooming: I seem to be getting a couple of announcements for new startup-related meetups every month in Wellington. Startup Garage and Lean Startup Wellington how have over 1,000 members each. People are getting together, which is great.
  • Startup Weekends continue to thrive: There’s no shortage of newbie entrepreneurs starting their entrepreneurial journey through Startup Weekends. We ran 11 events up and down the country this year, with 736 participants – both records. Many of these participants are now fully plugged into the scene, some running their own startups, some working for others, and some busily hatching plans. And some qualifying themselves out, having decided they’re happier in their day jobs. Win.
  • Accelerator ramp-up: Lightning Lab ran three programmes this year – Auckland, Christchurch, and Manufacturing (Wellington). The dust hasn’t settled yet, but this is likely to have resulted in 10+ new startups achieving funding, networks, and a path to global success.  Oh, and another 10+ startups being qualified out after a short sharp experiment – to me that’s also an important success statistic. The Government R9 Accelerator broke new ground, and will be doing round two this year. Vodafone’s Xone will be opening in 2016. And there are others.
  • An explosion in angel investment activity: AngelHQ‘s Dave Allison told me that as at the beginning of December, not including any of the Lightning Lab companies, the club had 12 open investment deals. I can’t remember a time where there were more than 3 or 4 deals open at any given point in time. Given that nearly all angel club deals in NZ are now syndicated between clubs, I’m sure that the menu at ICE Angels, Enterprise Angels, Manawatu Investment Group, Venture Accelerator Nelson, and Otago Angels are growing in a similar fashion. Post-earthquakes, Canterbury Angels is also off to a great start. And there are a host of unofficial syndicates forming around the country too. There’s never been a better time to be an angel investor.

ICE Angels summarised the year’s angel activity with this nice Prezi – thanks guys!

Finally, I’d like to leave you with a quote from Victor W Hwang, author of “The Rainforest“, and cofounder of Global Innovation Week (HT: Andreas Stefanidis)

“Despite outward appearances, the Startup Movement is not just about startups. It is actually a deeper cultural shift that cuts to the heart of the human condition. It reflects a dissatisfaction with the way much of the world has gone for the last several decades. It marks a transformation in how we view our societies, how we convene our communities, how we create value together as human beings. It’s a counterpoint to the governing economic paradigm – what economists call neoliberalism – which has prized efficiency and productivity above everything else, even when it has corroded relationships that bond us together in our communities and social networks…

“Innovation is not a solo sport. It thrives in supportive, diverse, connected, pay­it­forward ecosystems. It dies in selfish ones. Building a startup – indeed, bringing any innovation to life – is hard enough already. The last thing you need is distrust, high social barriers, and cynicism from those around you. You need people who are willing to believe in you. Because human beings innovate together in teams.”

Thanks for your support this year, reading and spreading the stories of NZ startups going global.

If you’re involved in the startup scene, good on you for taking risks, sharing your energy, and pursuing your passion – you’re making the world, and New Zealand, a better place for everyone.

If you’re a bystander, a dreamer, or an armchair startup enthusiast, there are plenty of ways for you to get involved in 2016. Just contact any of the organisations mentioned above, and start forming the connections that will enable you to become part of the success story we’re all creating together of New Zealand as a global entrepreneurial powerhouse.

That’s it from me for 2015. Have a great break, and we’ll see you in February.