Founders cash out as Israeli Adallom raises $30M

The funding round, led by EMC and Sequoia capital, is the company’s second in a year. Five million will be used to buy out some of the founders’ shares. Yet another funding round was announced in what is turning out to be a banner month for Israeli high-tech.

Cyber security firm Adallom is in the final stages of raising $30 million, $5 million of which will be allocated to allow founders Roy Reznik, Ami Luttwak and Assaf Rappaport to cash out some of their shares, according to Israeli financial newspaper Calcalist.

The investors in the new round include cloud backup firm EMC, which is a new investor in the company, as well as Britain’s Index Ventures and Sequoia Capital. Zohar Zisapel, one of the founders of the RAD group, is also among the company’s investors.

This is the company’s second round of funding in a single year. Since its founding, Adallom has raised $45 million.

Adallom is a SaaS company that secures the data of large organizations that migrate services and applications to the cloud. Anyone using Salesforce, Microsoft or Google services in the cloud, for instance, is protected from hacks by the companies themselves but the burden is on the user to provide an extra layer of protection for their own data.

On Tuesday, Adallom announced a business partnership with U.S. data security firm FireEye, which currently trades on the NASDAQ at a valuation of $5 billion. The agreement will help Adallom’s product reach more customers in the United States.

Source : geektime