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How Google and Yahoo’s shift to stricter email standards proved a windfall for this Armenian startup

EasyDMARC, a B2B SaaS startup out of Armenia that aims to simplify email security and authentication, said it has raised $20 million in a Series A round led by New York-based Radian Capital.

DMARC is a technical standard that is designed to protect the senders and recipients of email from spam, spoofing and phishing. This “Domain-based Message Authentication, Reporting, and Conformance” remained a somewhat obscure, if important, standard until October 2023, when Google and Yahoo! said they would make it mandatory for bulk email senders from this year.

Since DMARC’s creation in 2012, many major email providers have committed to implementing the protocol for bulk email senders, but plenty of companies are yet to implement it in their systems. EasyDMARC has leveraged the momentum to amass more than 83,000 customers in over 130 countries since it was founded in 2018 by Gerasim Hovhannisyan and Avag Arakelyan.

It’s clear the enforcement of the standard has helped the startup in this fundraising.

Hovhannisyan told TechCrunch the funding round came together pretty easily after Google’s announcement: “We were getting inbound [interest] from investors. More than 40 VCs started talking to us, and this March, we got a lot of term sheets. We were most aligned with Radian on work and culture, and passed their due diligence. We will be using their networks to help us grow in the U.S. and globally,” added Hovhannisyan.

Admittedly, the startup does have competitors: Valimail (raised $84 million), ProofPoint, and Minecast (raised $90.2 million) also provide email security and authentication services. 

But, as Hovhannisyan said: “As the name implies, our solution is easy. What matters is customers saying it’s easy; they get peace of mind. They don’t need expert knowledge to implement our solution.” 

Hovhanisyan came up with the idea for the company in 2016 after looking into the aftermath of a severe email phishing attack on a multi-billion-dollar company. He looked into the latest email security technologies and though there were a variety of solutions, none packed the DMARC protocol into something relatively easy for businesses to use. So together with co-founder Arakelyan, in 2018, he launched the startup to tackle this problem.

More standards are on the way that will further benefit EasyDMARC.

The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards designed to ensure that all companies that accept, process, store or transmit credit card information maintain a secure environment. From March next year, all fintech companies will have to use the PCI DSS standard — this also benefits EasyDMARC.

The funding round also highlights the growing momentum in the Armenian startup ecosystem, which has been attracting attention from global investors. With a population of around 3 million, Armenia is not a large market, so startups go international right away. It helps that the country has a long history of tech innovation and is one of the five top scientific research centers in the former USSR. Notable local companies include the unicorns Picsart and ServiceTitan.

Commenting on the funding round, Dana Sadovnic, principal at Radian Capital, said in a statement: “EasyDMARC is poised to capitalize on a massive and largely untapped market opportunity, driven by generational tailwinds from Google and Yahoo’s regulatory announcements and rising phishing attacks.”

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X makes it more expensive to post links through its API

Social network X has made it more expensive to post links through its API. The change is designed to thwart spam and “vectors of misuse,” the company said. The new pricing increased costs from $0.01 per link to $0.20

Last week, the X developer account posted changes to its API rates. The two most notable hikes were an increase in link posting price and an increase in posting price, which went up from $0.01 to $0.15 per post.

This move might discourage many publications from posting links. For instance, tech news aggregator Techmeme stopped adding links to the original articles in its posts on X this week. Instead, the posts say “Visit Techmeme dot com for the link and full context!”

Earlier this week, Techmeme said that the price increase was one of the reasons to remove links, which it said may return later. The publication also cited a Nieman Lab study, which noted that including links with posts on X resulted in dropped engagement.

X’s head of product, Nikita Bier, refuted the study’s results and said that accounts covered in the study were “habitual headline+link posters” that posted no additional context. He also replied to the Techmeme founder Gabe Rivera, that there is “no there is no code that is deboosting links.”

He added that Techmeme should post a screenshot of reactions to the news along with the link.

Earlier in the week, Rivera reacted to API price changes and said that this would force news sites to pay hundreds of dollars or post manually.

“I think they’re saying if you have a news site that tweets links, and you don’t tweet them manually, you now have to pay X hundreds of dollars per month?” he argued.

The debate of X reducing the reach of posts with links is not new. A few years ago, the company cut headlines from the link previews on the platform but reverted the change after a few weeks.

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UK government says 100 countries have spyware that can hack people’s phones

More than half of the world’s governments have access to commercial spyware that can break into computers and phones to steal sensitive information, according to U.K. intelligence.

The U.K. National Cyber Security Centre plans to reveal its findings Wednesday, according to Politico. The report suggests that the barrier to access this types of surveillance technology has fallen, potentially making it easier for foreign governments and hackers to target U.K. citizens, companies, and critical infrastructure with spyware.

It’s also an increase in the number of countries with access to these type of hacking tools, to 100, up from the 80 countries U.K. intelligence estimated in 2023.

Commercial spyware, developed by private companies like NSO Group’s Pegasus and Paragon’s Graphite, often relies on exploiting security flaws in phone and computer software to break into the devices and steal the data within. While governments have claimed that they only use spyware against top criminal and terror suspects, security researchers and human rights defenders have long warned that governments have misused spyware to target their critics and political adversaries, including journalists.

U.K. intelligence now says that the victimology has “expanded” in recent years to include bankers and wealthy businesspeople.

Richard Horne, who runs the U.K. National Cyber Security Centre, said in a speech at the CYBERUK conference in Glasgow that British companies are “failing to grasp the reality of today’s world,” per a pre-released copy of his speech seen by TechCrunch.

Horne said that the majority of nationally significant cyberattacks targeting the United Kingdom has originated from foreign adversarial governments, rather than cybercriminal gangs.

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The U.K., along with several other countries, also continues to experience China-linked intrusions aimed at stealing sensitive data, spying on high-profile individuals, and setting the groundwork for potentially disruptive hacks to stall a Western military response ahead of an anticipated Chinese invasion of Taiwan.

The spyware threat facing the U.K. is not just from governments, but also cybercriminals with access to these tools. Earlier this year, a hacking toolkit dubbed DarkSword, containing several exploits capable of hacking into modern iPhones and iPads, leaked online. The tools allowed anyone to set up websites capable of hacking Apple customers who had not yet updated to the most recent version of its mobile software.

The leak of the hacking tools showed — and not for the first time — that even tightly guarded hacking tools developed by and for governments can leak and proliferate out of control, putting potentially millions of people at risk from malicious hacks.

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OpenAI teams up with Infosys to bring AI tools to more businesses

OpenAI has partnered with Infosys to integrate its artificial intelligence tools, including coding assistant Codex, into the Indian IT giant’s Topaz AI platform.

Infosys said the integration will be used to help its clients modernize software development, automate workflows and deploy AI systems at scale, initially focusing software engineering, legacy modernization, and DevOps.

India’s IT services firms face mounting pressure from a mix of slowing client spending and rapid advances in generative AI. Shares of Infosys have fallen over 22% this year amid a broader sell-off triggered by weak forecasts, investor concerns that AI tools could automate parts of traditional outsourcing work, and macroeconomic turmoil due to the U.S.-Iran war.

The move also reflects a broader trend of AI firms teaming up with global IT services providers to scale adoption in large enterprises. OpenAI has previously partnered with HCLTech, and Infosys has struck a similar deal with Anthropic.

OpenAI gains a distribution channel into large enterprises through Infosys’ global client base and delivery capabilities across more than 60 countries. The companies said the deal is aimed at helping enterprises move from experimentation to large-scale deployment.

Infosys has been ramping up its AI business. The company said earlier this year that AI-related services generated ₹25 billion (about $267 million) in revenue in the December quarter, or roughly 5.5% of its total.

The deal is part of a broader push by OpenAI to expand its enterprise footprint through initiatives such as Codex Labs, announced on Tuesday, which involves engineers working with clients to help deploy its tools. Initial partners include Accenture, Capgemini, CGI, Cognizant, Infosys, PwC and Tata Consultancy Services, as OpenAI aims to build a distribution network to scale adoption of Codex, which now has more than 4 million weekly active users.

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The companies did not disclose financial details of the deal.

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