Spikerz, a Tel Aviv-based startup specializing in social media account security, announced it has secured $7 million in Series A funding. The round was led by Disruptive AI and included participation from Horizon Capital, Wix Ventures (formerly Wix Capital), Storytime Capital, and BDMI. This follows a pre-seed round led by Horizon Capital.
The investment will fuel Spikerz's platform expansion, technological advancements, and market growth within the expanding social media security sector.
The increasing reliance of individuals and businesses on social media for revenue generation has heightened the significance of security threats. The first half of 2024 saw approximately 20 million compromised Facebook accounts, resulting in an estimated $3 billion in losses. High-profile breaches affecting celebrities (e.g., Drake) and major brands (e.g., Manchester United, McDonald's, OpenAI, Metallica, Wiz Khalifa) highlight the substantial financial and reputational risks.
The creator economy, valued at $250 billion in 2023 and projected to reach $480 billion by 2027, is heavily dependent on social media. Simultaneously, successful account takeovers have increased by 1000%. Spikerz aims to mitigate these vulnerabilities through its advanced platform, offering account protection, fraud detection, and proactive solutions to safeguard users' digital presence and income.
CEO Naveh Ben Dror stated, "Social media platforms are critical for businesses globally, but malicious actors, increasingly leveraging generative AI, pose a significant threat. Spikerz is committed to using AI-driven tools and cybersecurity expertise to protect accounts. This funding reflects the urgency of the problem and investor confidence in our solution."
Founded by cybersecurity veterans Naveh Ben Dror, Ron Storfer, and Ron Azogui, Spikerz provides a web platform designed to protect accounts from hacking. Its comprehensive solution for social media teams and influencers includes:
- Hacking Prevention: Protection against phishing, scams, and ransom threats.
- Impersonator and Bot Defense: Detection and removal of fake accounts and malicious bots.
- Shadowban Mitigation: Tools to identify and resolve issues affecting account visibility.
Spikerz's design partnership with Wix (also an investor through Wix Ventures) highlights the importance of social media security. Eitan Israeli of Wix Ventures commented, "We're excited by Spikerz's innovative solution addressing a critical market need. It benefits both large enterprises and SMBs. We're confident this investment will drive significant industry value."
Gadi Tirosh, Venture Partner at DisruptiveAI, added, "Social media assets' integrity is crucial for brands. Spikerz offers unique protection for these vulnerable assets. The strategic investment from Wix and BDMI validates the need and Spikerz's approach."
