{"id":20614,"date":"2024-07-03T14:49:43","date_gmt":"2024-07-03T18:49:43","guid":{"rendered":"https:\/\/www.insightpartners.com\/?p=20614"},"modified":"2024-07-03T14:49:43","modified_gmt":"2024-07-03T18:49:43","slug":"how-evan-reiser-is-better-understanding-and-securing-human-behavior-with-abnormal-security","status":"publish","type":"post","link":"https:\/\/www.insightpartners.com\/ideas\/how-evan-reiser-is-better-understanding-and-securing-human-behavior-with-abnormal-security\/","title":{"rendered":"How Evan Reiser is better understanding and securing human behavior with Abnormal Security"},"content":{"rendered":"<p>Evan Reiser is now the CEO of <a href=\"https:\/\/www.businessinsider.com\/abnormal-security-valued-at-5-billion-in-new-funding-round-2024-6#:~:text=Abnormal%20Security%20uses%20AI%20to,round%20led%20by%20Greylock%20Partners.\">a human behavior security company worth billions<\/a>, but he hasn&#8217;t always been as dedicated to his work as he is today. In high school, he was an avid gamer \u2014 staying up all night exploring the nascent internet, building games, and unraveling online puzzles.<\/p>\n<p>While a straight B student, he went on to earn a place at Rensselaer Polytechnic Institute, but his late-night gaming habits quickly became unsustainable.<\/p>\n<p>\u201cI failed second semester and got a job at a local ice cream store,\u201d he recalls. He decided to write to the dean of the university, asking for another chance. When he returned after the summer break, he was a changed student. He graduated in computer engineering, ultimately making the dean\u2019s list.<\/p>\n<p>This stumble changed him, he says. \u201cThat was when I developed my work ethic.\u201d In 2006, when he landed his first software engineering job in Manhattan after college, he maintained the same diligence, arriving at the office by 7 a.m., and always the last to leave.<\/p>\n<h2>\u201cYou have to build things that lots of people value\u201d<\/h2>\n<p>Reiser has learned the secret to building scalable businesses through trial and error \u2014 starting multiple business ventures after spending multiple years as a software engineer.<\/p>\n<ul>\n<li aria-level=\"1\">In 2007, he founded GamerNook, a social platform where gamers could connect and chat. \u201cI was getting fan mail from users saying it changed their lives, but I was dead broke, using my savings to pay server bills, eating off the Burger King dollar menu, and sleeping on a friend\u2019s couch.\u201d<\/li>\n<li aria-level=\"1\">In 2008, Reiser teamed up with some ex-Yahoo executives and created Bloomspot, designed like Groupon but for luxury experiences. It was this venture that taught him the finer points of unit economics. \u201cWe made money and hired more than 100 people,\u201d he says. \u201cBut the cost of acquiring customers just kept going up and up.\u201d In 2012, <a href=\"https:\/\/techcrunch.com\/2012\/12\/20\/chase-acquires-local-offers-startup-bloomspot\/\">the company was acquired by JPMorgan Chase &amp; Co.<\/a><\/li>\n<li aria-level=\"1\">In 2010, he built AdStack, a software company offering digital personalization for ads and email marketing. Reiser became one of AI\u2019s pioneers, testing technologies to harness and analyze reams of data. Reiser spent the next eight years in behavioral ad targeting, during which his company AdStack was acquired by TellApart and then by X (formerly known as Twitter), where he doubled ad revenues to $2B annually.<\/li>\n<\/ul>\n<h2>Applying data science to email security<\/h2>\n<p>At X, he began to think about applications for data science outside of advertising. \u201cImagine that you could see every single keystroke of every employee in the world,\u201d posits Reiser. \u201cYou would develop a superhuman ability to answer business questions.\u201d<\/p>\n<p>Reiser, along with his cofounder and former coworker Sanjay Jeyakumar, left X in 2018 to pursue the founding principle behind Abnormal Security: using AI to understand human behavior. By understanding humans perhaps even better than they understand themselves, the duo realized that there was the opportunity to use that insight for hundreds of different business-relevant applications.<\/p>\n<blockquote><p><em>\u201cWe have similar values and both really enjoy the process of doing the work and truth-seeking.&#8221;<\/em><\/p><\/blockquote>\n<p>\u201cWe have similar values and both really enjoy the process of doing the work and truth-seeking,\u201d Reiser says of their partnership. \u201cAnd we\u2019re both incredibly optimistic.\u201d<\/p>\n<p>\u201cSanjay is very perceptive and thoughtful. His cognitive skills are off the charts. If he is in the conversation, he makes everyone else smarter, like a force multiplier in people&#8217;s brains.\u201d<\/p>\n<p>They needed revenue in order to develop their tech, so they talked to 100 CSOs and CIOs: \u201cWe told them our vision and asked what applications they would be willing to pay for.\u201d The response was conclusive: 90% of the immediate use cases were in cybersecurity.<\/p>\n<p>The focus on email security was a natural evolution, as most of the successful social engineering and phishing attacks at the time were exploiting email as a channel. In 2018, business email compromise was just starting to become widespread, with CEO impersonations rising. \u201cThese attacks are successful because they rely on exploiting human behavior, and since they didn\u2019t have malicious attachments or links, they were able to easily bypass existing defenses,\u201d says Reiser. \u201cWe realized that protecting people from these attacks was key, and that use case really inspired us.\u201d<\/p>\n<hr \/>\n<p><strong>Scale up your career<\/strong>: See all open roles at <a href=\"https:\/\/jobs.insightpartners.com\/jobs\/abnormal-security\">Abnormal Security on the Insight Partners job board.<\/a><\/p>\n<hr \/>\n<h2>The investor POV<\/h2>\n<blockquote><p><em>\u201cAs soon as someone tries it, they want it.\u201d<\/em><\/p><\/blockquote>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-14689 size-large\" src=\"https:\/\/www.insightpartners.com\/wp-content\/uploads\/2023\/04\/Steve-Ward-Managing-Director-Insight-Partners-1024x576.png\" alt=\"Steve Ward Managing Director, Insight Partners\" width=\"1024\" height=\"576\" srcset=\"https:\/\/www.insightpartners.com\/wp-content\/uploads\/2023\/04\/Steve-Ward-Managing-Director-Insight-Partners-1024x576.png 1024w, https:\/\/www.insightpartners.com\/wp-content\/uploads\/2023\/04\/Steve-Ward-Managing-Director-Insight-Partners-300x169.png 300w, https:\/\/www.insightpartners.com\/wp-content\/uploads\/2023\/04\/Steve-Ward-Managing-Director-Insight-Partners-768x432.png 768w, https:\/\/www.insightpartners.com\/wp-content\/uploads\/2023\/04\/Steve-Ward-Managing-Director-Insight-Partners-1536x864.png 1536w, https:\/\/www.insightpartners.com\/wp-content\/uploads\/2023\/04\/Steve-Ward-Managing-Director-Insight-Partners.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>They immediately started ideating about using AI to prevent these socially engineered attacks, starting Abnormal Security in early 2018. By\u00a0 2019, after a successful Series A investment, Reiser and Jeyakumar had an extremely strong six-year business plan complete with marketing and hiring strategies.<\/p>\n<p>\u201cIt was audacious and maybe ridiculous, in hindsight,\u201d Reiser says. \u201cWe had a path to IPO all worked out.\u201d<\/p>\n<p>The company&#8217;s approach to email security paid off, and Abnormal grew quickly. In the first year, it secured dozens of customers and iterated to launch additional add-on products focused on detecting and remediating compromised accounts.<\/p>\n<p>For both the company\u2019s Series B investment in 2020 and Series C investment in 2022, Reiser listed out who thought would be the best investors, which included Insight. \u201cThere [were] a lot of institutional reasons why Insight was a good firm,\u201d he explained. \u201cInsight had a lot of value outside of the financial investment.\u201d<\/p>\n<p>Reiser then gave himself a strict two-week deadline to evaluate and pick the investors he wanted on board for his Series C. \u201cI don\u2019t like to waste time,\u201d he explains. \u201cAny time I\u2019m not building or selling our product is doing a disservice to the company.\u201d<\/p>\n<p>An investor from a previous funding round for Abnormal reached out to <a href=\"https:\/\/www.insightpartners.com\/team\/stephen-ward\/\">Stephen Ward<\/a>, managing director at Insight Partners. \u201cIt was a great vote of confidence,\u201d says Ward, former CISO at Home Depot. Ward\u2019s previous experiences also impressed Reiser and later helped shape Abnormal\u2019s future.<\/p>\n<p>\u201cIt wasn\u2019t just about the firm, although we liked the fact that Insight could go on a longer-term journey with us. It was about the individual. We wanted to align with someone who was going to contribute more than money,\u201d explains Reiser. \u201cAs a former CISO himself, Steve understood the problem and knew a lot of our customers. He took the opportunity very seriously.\u201d<\/p>\n<p>\u201cWhat I loved about Abnormal was that it just runs quietly in the background,\u201d says Ward. \u201cThe time to value is extraordinary for such a complex piece of AI tech. As soon as someone tries it, they want it.\u201d<\/p>\n<h2>\u201cWhen he speaks, I listen\u201d<\/h2>\n<p>\u201cWe were scheduled to have a Zoom, but I wanted to show the scale of my commitment,\u201d continues Ward. \u201cSo instead, I jumped on a 6 a.m. flight from New Jersey to San Francisco and came in person. We were supposed to speak for an hour, but we spent three hours on the whiteboard working on the product roadmap.\u201d<\/p>\n<p>Reiser admired his chutzpah, he says. \u201cIt was sincere. It means a lot when someone is willing to make a six-hour trip to come and shake your hand. I realized that Insight was committed to our success, and that was important as we continued to grow the company at this scale.\u201d<\/p>\n<p>In May 2022, Abnormal announced it had <a href=\"https:\/\/www.insightpartners.com\/ideas\/abnormal-security-raises-200m-at-a-4b-valuation-to-protect-the-modern-enterprise-workforce-with-its-ai-based-email-security-platform\/\">closed a $210M round<\/a> led by Insight, valuing the four-year-old company at $4B. The capital has helped the team grow its footprint across Europe and Asia and continue investing in its AI capabilities as it expands beyond email security.<\/p>\n<p>Meanwhile, Ward and Insight\u2019s team have brought considerable value across customer acquisition, hiring, and strategy.<\/p>\n<p>\u201cI had a meeting with a Fortune 100 company yesterday \u2014 I was introduced by Steve,\u201d says Reiser. \u201cThat alone is probably worth $20M in enterprise value.\u201d<\/p>\n<p>\u201cWard is the three-in-one,\u201d he adds. \u201cHe\u2019s a financial investor, an example customer, and a product specialist. When he speaks, I listen.\u201d<\/p>\n<h2>The future is Abnormal<\/h2>\n<p>Since the Series C investment, Abnormal Security has hired some of the most well-known minds in the industry, including Silicon Valley mogul Michael DeCesare, a cyber veteran who has floated two companies during his distinguished career. Right now, Abnormal boasts 800 staff and protects nearly a fifth of the Fortune 500.<\/p>\n<p>Abnormal Security is on a journey to \u201cunderstand humans better than humans,\u201d says Reiser.<\/p>\n<p>\u201cWe started with a basic business email compromise solution,\u201d he explains. \u201cThen we started preventing broader social engineering, blocking attacks like phishing and malware. And once you train AI to understand more about people, it can intercept all inbound attacks, so we have expanded to include more cloud platforms.\u201d<\/p>\n<p>\u201cToday, we do a lot more than just email security,\u201d he continues. \u201cWhen your core focus is understanding human behavior, the opportunity snowballs. The more data you can access, the more you learn about people, and the more platforms you can protect.\u201d<\/p>\n<p>The company has already started expanding its offerings, with account takeover protection now available for more than a dozen applications including Salesforce, ServiceNow, AWS, and Workday. &#8220;I&#8217;m really excited about the possibilities,&#8221; Reiser continued. &#8220;The ability to understand human behavior provides so many opportunities within cybersecurity, but also outside of it.\u201d<\/p>\n<p>Examples include tools that can showcase:<\/p>\n<ul>\n<li aria-level=\"1\">Which sales reps are the best at communicating your brand story effectively<\/li>\n<li aria-level=\"1\">Who in the organization does everyone go to for help but isn\u2019t recognized as a key contributor<\/li>\n<li aria-level=\"1\">Where a business is accidentally infringing on sales agreements.<\/li>\n<\/ul>\n<p>\u201cThe number of applications\u2026it\u2019s mind-blowing,\u201d says Reiser.<\/p>\n<p>\u201cWe\u2019re just getting started. The best from Abnormal is yet to come.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Evan Reiser is now the CEO of a human behavior security company worth billions, but he hasn&#8217;t always been as dedicated to his work as he is today. In high school, he was an avid gamer \u2014 staying up all night exploring the nascent internet, building games, and unraveling online puzzles. While a straight B [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":20617,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[132],"tags":[],"class_list":["post-20614","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-software-leaders","topic-stories","domain-cybersecurity"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.1 (Yoast SEO v23.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Evan Reiser is better understanding and securing human behavior with Abnormal Security | Insight Partners<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.insightpartners.com\/ideas\/how-evan-reiser-is-better-understanding-and-securing-human-behavior-with-abnormal-security\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Evan Reiser is better understanding and securing human behavior with Abnormal Security\" \/>\n<meta property=\"og:description\" content=\"Evan Reiser is now the CEO of a human behavior security company worth billions, but he hasn&#8217;t always been as dedicated to his work as he is today. 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