Scio Security lands $1 Million in VC

Ann Arbor’s Scio Security has pulled down a big number in venture capital and plans to continue hiring as a result of this. The 8-month-old start-up co-founded by Dug Song and Jon O’Berhede (both of Arbor Networks fame) recently landed $1 million from a group of angel investors and Silicon Valley-based True Ventures, which lead the initial round of fundraising. “The biggest criteria for us are people, by far, because we invest so early,” says Puneet Agarwa, partner with True Ventures. “We jumped at the chance to partner with Dug and Jon. … We are betting on Dug and Jon building a great company in Ann Arbor.”Scio Security, which calls the Tech Brewery home, has doubled its staff to four people and an intern so far and expects to hire at least two people if not more. Most of these hires will be in sales and marketing. Scio Security focuses on providing new security solutions for financial transactions on the Internet. Hackers have recently focused efforts on shadowing users or stealing their passwords and other security information to access financial data. Scio Security is creating a variety of solutions, some patent pending, such as an immediate call back to confirm the correct person is trying to access information.”The weakest password or the most gullible employee is the new firewall,” says Song, CEO and co-founder of Scio Security. “That’s where you have to focus your security.”Source: Dug Song, CEO and co-founder of Scio SecurityWriter: Jon Zemke